Annual profits dipped at Stagecoach after the transport firm's UK rail business under-performed.
Pre-tax profit for the year to the end of April fell to £202.5m pounds, from £205.7m the year before.
However, revenues came in 8.4% higher at £2.59bn, with earnings per share rising to 25.4p.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm declared a total dividend for the year up almost 10% at 7.8p.
Its UK Rail division brought in profits of £27.1m, down substantially on the £48.4m it made the previous year.
"This reduction was principally due to losses incurred at East Midlands Trains in the first half of the year where revenue was below the level forecast when the contract was originally awarded, and the premium payments made to the Department for Transport (DfT) were agreed," Stagecoach said.
However, it said East Midlands Trains had earned revenue support payments from the DfT, which had returned that business to profitability for the second half of the year.
The firm said it had made a good start to the new financial year and that it was trading in line with expectations.
It added that it was well positioned to withstand any further deterioration in macroeconomic conditions due to solid financing arrangements, robust bus operations and its current rail franchises benefiting from the protection of government revenue support.
