Bus operator West Midlands Travel, Britain’s largest regional bus company, saw a further reduction in its operating and pre-tax margins during the year ended 31 December 2008, according to its annual accounts. The National Express Group subsidiary did though improve its cash profits by 4.2%.

Income grew at a rate above inflation, but was outstripped by a slightly higher increase in operating costs, with the result that though there was a small increase in cash profits, operating profit margin fell again to 10.8%.

Net interest costs were virtually unchanged. Exceptional items incurred included redundancy costs of £2.02m and provision against an amount owed by a group undertaking.

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