FirstGroup has announced a jump in passenger numbers since fares were reduced.

According to the Guardian, the embattled transport company has seen an increase in revenue in its bus division, with some areas reporting a rise of 150,000 people a week. 

The news comes as welcome relief for FirstGroup, as it tries to stave off attempts by Swedish investor Thomas Sandell to get the company to split up its UK and US operations. It also marks a turnaround in the group's fortunes, two years after it issued a profits warning.

Giles Fearnley, managing director of First's bus division, acknowledged how it had improved a service which was raising prices, yet reducing the frequency of its vehicles. He said: "We're seeing the fruits of that [improvement] coming through after working hard behind the scenes to keep our promises."

Additionally, the group has announced it has placed a £70 million order for 425 new vehicles. The new fleet, which includes six electric buses is expected to be delivered during the 2014-2015 financial year.