Stagecoach has attributed a healthy rise in pre-tax profits to customers becoming more receptive to public transport amid rising fuel prices.

The transport operator has posted a seven per cent increase in profits to £174 million in the year ending April 30th.

Revenue from continuing businesses was up 17.2 per cent to £1.76 billion, with Stagecoach hailing its increased investment in bus and rail services.

Stagecoach, which owns several UK rail franchises including south West Trains and East Midlands Trains, said global factors were making public transport more popular with British travellers.

Chief executive Brian Souter said the change in attitudes was being driven by “increasing road congestion, rising fuel costs and concern about climate change”.

“We are leading the sector in offering customers greener, smarter travel to reduce their carbon footprint,” he continued.

Mr Souter added: “In the UK, our bus division has achieved six successive years of organic passenger volume growth and we have expanded our regional bus operations through targeted bolt-on acquisitions.

“We have strengthened our position as a leading UK rail operator, generating strong revenue growth, winning new contracts and offering consistently high quality of service to our customers.”