FIRSTGROUP is the latest rail operator to report profits and a continuing growth in passenger numbers — although there was the first hint of a slow-down in September.

The group said first-half profit fell 58 per cent due to the costs of integrating the American bus company Laidlaw into its school bus operations in the United States and Canada.  But, after stripping out the merger costs, underlying pre-tax profit rose by 44 per cent to £107.1 million in the six months to 30 September.

Rail operating profits were flat at £48.3 million — but revenues increased 11.2 per cent to £960.6 million after a six per cent rise in passenger volumes. This is in line with recent announcements from other train operating company owners Arriva, National Express and Stagecoach, which reported passenger numbers up by between nine and 11 per cent.

However, there was a hint of the impact of the economic downturn. First said Capital Connect saw a marginal slowdown in growth in September, which analysts said was due to a slowing in London employment.

All of First’s passenger franchises — Great Western, Capital Connect, TransPennine Express and Scotrail — reported improving punctuality, with ‘public performance measures’ of over 90 per cent, including a marked improvement in Great Western’s performance, which First said had “substantially improved” since last year.

•  Chief Executive Sir Moir Lockhead told BBC News that higher fuel prices and the reduction in driving in the United States had also led to a five per cent increase in passengers travelling on Greyhound buses — part of the Laidlaw business that FirstGroup acquired last year.