Perth-based Stagecoach has posted an increase in revenues and underlying profits as passenger volumes continue to recover from the Covid pandemic.

Passenger journeys on its UK regional bus operations have in recent weeks reached 80 per cent of their equivalent levels in 2019, the company said. This has been bolstered by the free bus travel scheme for under-22s in Scotland, which was introduced in January, and the economic downturn which is driving a "modal shift away from car to bus".

The group was further bolstered by payments from national governments to protect public transport services.

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Revenues for the six months to October 29 came in at £669.6 million, up from £579.4m a year earlier. Adjusted pre-tax profits rose to £36.4m from £18.4m.

The company was taken private earlier this year when it was bought by asset management investor DWS Infrastructure in a £595m deal. Stagecoach chief executive Martin Griffiths said the results were pleasing as the group "moves forward under new ownership".

"We have made further progress as we rebuild from the pandemic, manage the immediate-term macro-economic headwinds, and position our business to maximise the opportunities for growth as we transition to a net zero future," Mr Griffiths said.

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"At the same time, the current economic environment is helping to demonstrate the good value of our public transport services and encourage modal shift away from the car."

The company's London bus operations slipped into a small loss as staff shortages led to contractual penalties and lower quality incentive income. It was also hit by higher staff costs and rising inflation, though this is expected to improve as inflationary increases in contract revenues feed through.