Arriva reported a 6.5% increase in pre-tax profits this morning as London's largest bus operator predicted growing patronage for public transport across Europe.
The British transport group said it made a pre-tax profit of £110m in 2006 on turnover up 10% at £1.73bn.
David Martin, Arriva chief executive, said public transport has been pushed to the fore by the environmental agenda over the past year: "The EU continues to highlight the environmental benefits of people switching journeys away from the car in favour of other modes, including public transport."
Although the UK generates 60% of Arriva revenue, it has been expanding on the continent and has already made small acquisitions this year in Spain, Germany and the Czech Republic.
The group said more deals could be struck this year, adding: "The success of our European growth strategy has been rewarding but there is more that we can and will achieve as markets continue to develop."
Arriva owns the largest Welsh rail franchise, Arriva Trains Wales, and is the largest bus operator in London. It has been shortlisted for three major rail franchises to be awarded later this year: East Midlands, Cross Country and the east coast route currently being run by GNER.
Arriva shares were up 14.5p to 744.4p on early trading.
