Stagecoach has posted a 27% rise in profits due to a spike in passenger numbers amid skyrocketing oil prices.

Pre-tax earnings for the train and bus firm totaled to £205.7 million, which the company attributes to the much higher price at the pump that has encouraged motorists to opt for train and bus travel.

The figure, which includes profits on all services running up until the 30th of April, reflects a major increase on last year’s earnings of just £161.3 million. The company’s revenues were totaled to £2.38 billion for the year – a rise of 10%. Its East Midlands Trains saw a 6.9% rise in passengers for the year, whilst South West Trains saw a rise of 4.1%.

Stagecoach’s 49% stake in Virgin Trains also paid off via a 9.3% rise in passengers for the year. Meanwhile, its bus systems saw a rise of 0.9%.  The firm also operates a number of similar ventures in both Canada and the United States and said that it saw passenger figures jump on the other side of the Atlantic as well.

Brian Souter, chief executive of Stagecoach, said that the news showed that passengers were continuing to look for better value in transport as well as convenient alternatives to combat the continually rising cost of petrol.