SCOTTISH bus and rail company FirstGroup has announced a 13 per cent rise in underlying annual operating profits to £303.6 million.

The company said the improved financial performance in the year to March 31 demonstrated its "multi-year transformation programme is making progress".

It added that transformation programmes in its UK bus and First Student school transport business in the US had delivered improvements in profit margin in these operations.

The Aberdeen-based company's revenue dipped to £6.05 billion in the year to March 31, from £6.72bn in the prior 12 months.

However, citing rail franchise changes, it said that underlying annual revenue was up 4.1 per cent.