Stagecoach, which runs buses across the UK and a number of British rail franchises, said pretax profit in the six months to Oct. 31, excluding exceptional items and intangible asset costs, was £105.2 million against £84.6 million a year ago.

The Perth, Scotland-based group said it believed the operating profits of the group's British and North American bus operations should be relatively protected from the impact of the economic downturn.

It said, however, that its UK rail operations were facing a challenging short- to medium-term outlook, and were more susceptible to changes in economic conditions and employment.

"As a result, we are taking action now to ensure our UK rail businesses remain competitive," the group said in its results statement.

"Our plan includes a cost reduction programme in our rail operations, which will include headcount reductions, and maximising revenue from planned rail initiatives."