£340m for Stagecoach shareholders

The company also said it was on course to meet profit expectations for the current year.

The Scottish transport group said shareholders would receive 47p for each share they hold under the proposals, which it said would give the group a “more appropriate and efficient capital structure” and reduce its cost of capital.

“The board has taken full account of the group’s development plans and access to funding in reaching its decision that this was an appropriate amount to return to shareholders,” it said in a statement yesterday. Stagecoach had said in June that it was reviewing its capital structure.

In a separate statement yesterday, Stagecoach said it had performed well since the start of its fiscal year and was on course to meet its profit expectations for the year to the end of April.

Comparable revenue grew by two per cent at its UK bus division and 8.4 per cent at its UK rail business. Virgin Rail, in which Stagecoach owns a 49 per cent stake, grew revenue by 11.1 per cent.