Aberdeen-based transport operator FirstGroup announced this morning that profits in the last financial year had almost doubled.
It also said it is resuming dividend payments.
The adjusted attributable profits in the 52 weeks to the end of March were £36.2million compared to £19.9million the year before.
Chief executive Graham Sutherland said: "The transformed group has momentum and we expect to make significant further progress in the year to March 2023.
"With leading positions in bus and rail, a strong balance sheet and a clear purpose, FirstGroup has many opportunities ahead to deliver sustainable shareholder value creation while delivering the vital services that are key to achieving society's sustainability and economic goals."
Executive chairman David Martin added: "We have delivered on our commitments this year to refocus the business, de-risk the balance sheet and unlock value for shareholders. As a cash generative business with a strong balance sheet, FirstGroup is well placed to invest in the services our passengers want, to sustain our path to a zero-emission bus fleet, and to actively consider additional value creation opportunities to leverage our market leading public transport expertise.
"The board's confidence in the prospects for the Group is reflected in the decision to commence dividend payments."
Takeover bid rejected
Just last week, the board of FirstGroup turned down a takeover bid worth up to £1.23billion.
The offer was from private equity group I Squared Capital.
At the end of May, FirstGroup confirmed that it had received a series of unsolicited, conditional proposals from I Squared.
The latest proposal received provided for a cash component of 118p per share and a contingent right of up to a further 45.6p per share.
But FirstGroup said last week: "The board, having carefully evaluated the proposal together with its advisers, concluded that the cash component of 118p per share significantly undervalues FirstGroup's continuing operations and its future prospects, and the contingent right to up to 45.6p per share does not provide shareholders with sufficient certainty.
"Accordingly, the board has unanimously rejected the proposal."
New boss appointed
FirstGroup appointed a new boss in April. Graham Sutherland's spent 12 years at BT where he held several senior positions, including chief executive of the BT business and public sector division.
The 58-year-old Scot was also chief executive of KCOM Group, a telecommunications company, from 2018 until its sale to a Macquarie-managed infrastructure fund a year later.
The company had been without a chief executive since last September, when Matthew Gregory left after Coast Capital, an American hedge fund that was then the biggest shareholder, criticised his competency and said that he should go.
Mr Gregory's final act was to deliver the £3.3billion sale of most of FirstGroup's US business, including its yellow school buses.
It was reported in April that Coast had been agitating for the group to be split up, but was not impressed by the deal as investors shared only £500million of the proceeds.
FTSE 100
The UK's top share index, the FTSE 100, was up 61 points at 7,268 shortly after opening this morning, following yesterday's 111-point loss.
Brent crude futures were up 0.14% at $122.42 a barrel.
Companies reporting today
- Full-year results: FirstGroup, Oxford Instruments
- Half-year results: Crest Nicholson Holdings, Paragon Banking Group
- Q4 results: Ashtead Group, DiscoverIE Group