Shares in Stagecoach are about as close to gilts as one can get in the current economic environment, the chief executive of the strongly cash-generative transport group said.

The privately operated public transport sector was one of only a handful that was thriving under current economic conditions, said Brian Souter, who established the bus and rail group in Scotland in 1980. Mr Souter said it was ironic that during a week of such dire economic news, the company had recorded one of its best performances ever.