Shares in Stagecoach were down on the FTSE 250 in morning trading after the group reported a rise in pre-tax profit in the full year ended 30 April.

Group revenue in the period increased from £2.2 billion to £2.4 billion, while pre-tax profit jumped from £161.3 million to £205.7 million.

Stagecoach said it would be raising its full year dividend from 6.5 pence per share to 7.1 pence per share.

During the period the group expanded in order to boost revenue in North America, while the group was also shortlisted for the Greater Anglia and West Coast rail franchises.

Sir Brian Souter, Chief Executive of Stagecoach, said, "We are seeing growing demand for our bus and rail services in the UK and North America, with further evidence of modal shift as consumers look for better value and more convenient transport alternatives to the rising cost of motoring and increasing road congestion.

"The strong results we have achieved across the Group are the result of our successful organic growth strategy. We are focused on providing value-for-money products, continuing to invest heavily in our networks, and harnessing the power of the Internet, new technology and social media to attract new customers and make it easier for people to access our services.

"We look forward with confidence to the year ahead. Public transport is central to supporting economic growth and meeting the global challenge of climate change. In the UK, high quality public transport will be at the heart of the successful delivery of the London 2012 Olympic and Paralympic Games. We believe the outlook for our bus and rail services is positive."

By 08:30 shares in Stagecoach were down 0.48 per cent on the FTSE 250 to 249.00 pence per share.