ClickAJob News

Transport company Arriva has reported a seven per cent rise in profits on a strong UK bus performance and double-digit mainland European growth.

Revenue is up 16 per cent to £2 billion, while the group order book is up 79 per cent to £12 billion, the organisation said.

Profit before taxation for continuing operations was up five per cent to £115.8 million, despite the headwinds of increased fuel costs and the significant costs incurred by bidding for three UK rail franchises, Arriva added.

Arriva's chief executive, David Martin, said: "I am confident the full benefits of recent successes in growing our operations will be demonstrated in 2008.

"The year has started well and we are on track to meet our target of doubling the size of our mainland European business from its 2006 level by 2011."

Acquisitions and contract wins helped the company's mainland Europe unit, with a revenue rise of 23 per cent to £927.5 million.

Although fuel-price increases cost the company's UK bus division £8 million, Arriva reported an operating profit increase of 16 per cent to £87.9 million.

Operating profit for the company's rail arm was hurt by tendering costs and was reduced to £7.5 million from £12.3 million in 2006.

The board has recommended a final dividend of 17.06 pence, bringing the total dividend to 22.65 pence per share.

Shares in Arriva dropped by 0.95 per cent in morning trading to £6.81.