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Train and bus operator FirstGroup has reported an 11.8 per cent rise in first-half operating profits, as the firm looks to expand further in the US.

In a statement the Scottish-based company confirmed that its adjusted operating profit for the six months to September 30th was £103.1 million, up from the £92.2 million reported for the corresponding period of 2006.

FirstGroup's overall revenues climbed by 3.1 per cent over the period, rising to £1.77 billion.

The transport group, whose rail franchises include First Great Western, said that investment was continuing to drive passenger growth across its train services.

FirstGroup's UK rail division saw its revenues increase by 5.6 per cent year-on-year to £863.6 million, with the improved performance driven by particularly strong growth in the second quarter.

Operating profit for the rail division also increased by 9.8 per cent to £48.2 million over the first-half.

FirstGroup said total revenues across its UK bus division had grown by 3.5 per cent to £540.1 million, with higher passenger numbers and a focus on operational performance also helping to drive profits growth.

The UK's largest bus operator, which carries an estimated three million passengers on its buses each day, said the division's operating profit increased by 20.5 per cent to £47.6 million during the first-half.

Meanwhile FirstGroup stressed that it was now in a position to conduct a review of the iconic US Greyhound bus business that it bought last month.

The transport group acquired the Greyhound business as part of its takeover of the North American transport group Laidlaw, with the deal completed on October 1st. FirstGroup said today that the acquisition provided the group with a "robust platform" for future growth in the US transport market.

FirstGroup chief executive Moir Lockhead also confirmed that the group's second-half trading had started well and was in line with expectations.

"The board's confidence in the group's future prospects and ability to continue to generate strong operating cash flows is reflected in the ongoing commitment to at least ten per cent annual dividend growth for at least the next three years," he stressed.