Stagecoach said that fuel costs and environmental concerns were driving people on to public transport faster than the economic slowdown was reducing custom as it unveiled a 17 per cent rise in revenue and a 7.7 per cent increase in underlying profits for the year.

Brian Souter, chief executive, said: “We are not experiencing any decline – in fact we are getting high growth figures,” adding that “the fundamental that has changed is car cost and climate”.