Aberdeen-based FirstGroup, which is in the process of acquiring Laidlaw International to become the leading transport operator in North America, has had a "fantastic" year and next year is looking even better.

Aberdeen-based FirstGroup, which is in the process of acquiring Laidlaw International to become the leading transport operator in North America, has had a "fantastic" year and next year is looking even better.

The rail and bus group's chief executive, Moir Lockhead, told the annual meeting yesterday significant investments had been made in both the UK and North America, the results of which were now being seen.

Group revenue increased by 22.4% to £3078.8m and adjusted operating profit was £259.2m, despite absorbing £37.1m of additional fuel cost.

"Our commitment to increase dividends by 10% for the foreseeable future, at least for a further three years, reflects the board's confidence in the group's strong cash generation and prospects for further growth."

The group is in the process of buying Laidlaw International, North America's biggest school bus operator, and Lockhead said it was confident the acquisition would bring opportunities to increase its service offering to customers.

Lockhead said while it still had an eye on Europe the group focus was now on America. "All of our management time will be focused on integrating Laidlaw with our existing business out there.

"We don't want to be distracted but the business has been built on opportunity - a strategy based on going to a particular market like America and trying to get into a leadership position there - but also opportunistic so if something came up which was irresistible we might look."

Once again, members of the Teamsters union travelled from America to lobby the annual meeting to protest at what they described as anti-union tactics by the company.

Also yesterday FirstBus drivers in Aberdeen were discussing possible strike action over the employment of staff through a third-party agency, and 14 drivers at Mairs, a private coach hire company owned by First, started a four-day strike.

They claim they are being unfairly treated compared to First Aberdeen bus drivers who share their building.

Lockhead rejected a suggestion that the company was anti-union and that the American attitude was spreading to Scotland.

He said he was proud of the relationship First had with the unions. "I can say quite categorically we are not an anti-trade union business either here or in North America. The key is the ability to say Yes I want to be a member of a trade union without any coercion from anyone' and to choose which trade union they want to join, and sometimes it is not the Teamsters. It is a much more competitive atmosphere between trade unions in America to recruit members than it is in the UK.

"The Teamsters think by coming here it will help and I say it will not help at all if you have not persuaded our staff in America to join you."