Brian Souter, the millionaire founder of Stagecoach, said he could not take full credit for the meteoric rise in his company's share price, but he admitted that since taking back the chief executive's reins he had spent "a lot of time fixing things".

Brian Souter, the millionaire founder of Scottish bus and rail giant Stagecoach, said he could not take full credit for the meteoric rise in his company's share price, but he admitted that since taking back the chief executive's reins he had spent "a lot of time fixing things".

Stagecoach, which operates a UK and North America transport empire from headquarters in Perth, yesterday saw its shares surge to another record high, climbing 5.9%, or 17.75p, to 319.75p, and valuing the company at around £2.3bn. Earlier in the day, it hit an intraday high of 323p a share.

Souter, who was speaking exclusively to The Herald after Stagecoach's annual meeting at Perth Concert Hall yesterday, said: "I can't really say that it was just me, but certainly our strategy is now a lot more focused than it once was.

"We're very concentrated on shareholder value - in fact, just as much as we are concentrated on value for our passengers.

"But I don't want to criticise the last chief executive. He did a good job and it was a hard job."

He added: "During the first couple of years, I did spend a lot of time fixing things."

Souter retook the reins of Stagecoach, which he founded with his sister in the 1970s with two buses, six years ago and began immediately restructuring it after Keith Cochrane, the company's former chief executive, quit over the continued underperformance of Coach USA.

On December 4, 2002, the date Souter returned to the business as chief executive, Stagecoach's share price was sitting as low as 27p.

The Tayside transport mogul, who was yesterday dressed in a 1970s-style, checked lounge jacket, red loafers and trousers with turn-ups which appeared a touch short, has since presided over a turnaround in both the share price and the company's fortunes.

Two months ago, Stagecoach unveiled a 17% rise in annual revenue to £1.8bn and a 7.7% increase in underlying pre-tax profits to £174m.

On Thursday, the company announced that its profits since the May 1 start of its new financial year had been better than it had expected, with revenues in its UK bus division in the 16 weeks to August 17 up 9.3% on the same period last year on a like-for-like basis.The company, whose directors sat bathed in blue light before shareholders at yesterday's AGM, told a crowd of around 200 private investors that it had "performed strongly" across its bus and rail unit, and also said that it was "encouraged by the early performance" of its Megabus.com coach business in the US, where it began services on May 30.

The AGM descended momentarily into disarray when the board discovered it had no voting cards and suggested its members raise their right or left arms to approve or reject resolutions.

Then what appeared to be a large rag fell from the backdrop behind the board of directors, just missing the head of non-executive director George Mathewson, the former Royal Bank of Scotland chairman, who appeared momentarily stunned.

A spokesman for the company was later unable to identify the object that had fallen.

Back to business, one of the main concerns for Stagecoach, whose rail businesses include South West Trains and the West Coast Main Line services, is the seemingly unstoppable price of oil. While the group has a good record in mitigating higher costs - even with more than 90% of fuel costs hedged in the UK for 2008 - the group could face an additional £25m-plus bill by the end of this year.

Nonetheless, the AGM was told that the rise in the price of fuel was also key to Stagecoach's success - both on the London Stock Exchange and in the profit and loss account.

Souter, a former bus conductor and accountant, said that fuel costs and environmental concerns on both sides of the Atlantic were driving people onto public transport faster than the economic slowdown was reducing custom and that new-customer revenue was growing by more than enough to compensate for higher fuel costs for its fleet.

"We have the right product at the right time," Souter told The Herald after the annual meeting.

"And it's not just in the UK. The Megabus is going gangbusters in the US.

"We find that young Americans are just as concerned about environmental issues as much as they are anywhere else - even in places like Chicago, where public transport may once not have been the preferred way to go."

The company's surging share price was also a hot topic at the AGM yesterday.

One private shareholder expressed concern that Mathewson was the only board member not to own shares in Stagecoach, and said that it could suggest that he "doesn't have any confidence in the company".

Mathewson said: "I plead guilty - and much to my disadvantage, because just look at the rise in the share price."

The former Royal Bank chairman went on to describe the situation as "an oversight on my behalf" and added: "I promise to buy shares. I believe it is good practice for directors to have shares."

Meanwhile, shareholder Mrs Moran from Crieff took the microphone and told the board: "I bought shares at 40p and just look at them now. I've made quite a good profit, so thank you very much."

Amid laughter and applause, another shareholder jumped up and said: "I bought mine at 15p."

Stagecoach chairman Robert Spiers quipped from the podium: "Perhaps you could consult with George Mathewson."

Mathewson retorted: "Maybe I should consult with him."