Transport firm FirstGroup saw its shares rise by about 6% on Wednesday morning after it reported a rise in annual profits.
The Aberdeen-based firm said adjusted operating profit rose by 13.3% to £303.6m for the 12 months to 31 March.
Reported revenue fell 9.9% to £6.05bn, but underlying revenue was up 4.1%.
Its UK rail business was hit last year when it failed to win new contracts to keep running services on First ScotRail and First Capital Connect.
The group said it expected improvements this year in its US and UK bus services to "largely offset" the impact of a smaller UK rail business.
FirstGroup is currently undergoing a multi-year turnaround programme in order to improve its financial returns.
In 2013, the group tapped investors for £615m via a rights issue and cancelled its dividend after profits fell sharply.
Transformation plan
Chief executive Tim O'Toole said: "Overall trading for the year is in line with our expectations and our transformation plan is beginning to deliver improving financial performance, though clearly much hard work remains ahead of us.
"We intend to deliver further progress from our multi-year transformation plans in our 2015/16 financial year.
"We currently anticipate strong progression in our non-rail businesses, driven mainly by the ongoing turnarounds of First Student and UK Bus, to largely offset the substantially lower contribution from UK Rail as a result of the end of the First ScotRail and First Capital Connect franchises."
He added: "We were awarded a contract to operate First Great Western for up to four-and-a-half more years, and will continue to work closely with the Department for Transport and Network Rail to deliver the £7.5bn Great Western Mainline modernisation programme to at least March 2019.
"We have also signed an agreement to run First TransPennine Express through to 1 April 2016, and recently submitted our bid to operate the franchise beyond that date."
In a separate statement, FirstGroup announced that group finance director Chris Surch had decided to retire from the company "for personal reasons".
His notice period ends on 8 January 2016. The board has commenced a formal search for his replacement.
Source: BBC