Stagecoach has reported revenue growth to £1.17bn, up from £928.2m the year before, while adjusted operating profits also rose to £72.7m, from £48.1m in 2021.
However, the Perth-headquartered transport group's preliminary results for the year ended 30 April 2022 also noted that the growth in adjusted operating profit reflects that revenue growth and payments from the UK and Scottish governments for continuing public transport services.
Unadjusted operating profit was £66.9m - although this was still up from a restated £28.2m the previous year - while adjusted earnings per share were 7 pence, up from 2.7p.
Underlying cash generation improved and there was a reduction in net debt from £312.6m to £224.3m. Net debt plus net train operating company liabilities were down £136.5m, from £401m to £264.5m.
Stagecoach also reported a 'substantial' reduction in net pre-deferred tax pension liabilities, from £263.8m to £29.8m.
Despite being positive on the longer-term prospects for the business, the board stated that it was not appropriate to resume dividend payments.
"We have made a good start to the year ending 29 April 2023, and while there remains some uncertainty around the pace of recovery, we continue to see positive long-term prospects for the business," read the stock exchange update.
"As part of our business strategy, we are continuing to seek new opportunities to diversify and grow our business both in the UK and overseas," the statement continued, adding: "We are proud to have won contracts linked to major events, including the forthcoming 2022 Commonwealth Games in Birmingham, and to have retained existing rail replacement contracts."
Passenger journeys and commercial sales now stand at around 81% and around 91% respectively, of equivalent 2019 levels. The group continues to transition out of Covid-19 support schemes.
Chief executive Martin Griffiths said: "We are in a good financial position, supported by recovering customer demand and continued investment grade credit ratings, as we look to the next phase of our journey under new ownership."
Earlier this year, Stagecoach accepted a £595m takeover bid from German asset manager DWS Infrastructure.
"We are not immune from the global macro-economic headwinds," stated Griffiths. "However, we believe our good value public transport services offer consumers help in managing the cost-of-living challenges and high fuel and energy prices, supporting our ambitions around modal shift from car to bus.
"In addition, we are making good progress with the delivery of our sustainability strategy and our transition plans, including introducing fleets of new zero emission buses."
The wider group consists of around 23,000 staff and circa 8,300 buses, coaches and trams in operation across Scotland, England and Wales.
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