Metroline, the London bus operator, saw profits fall by over 45% in the year to 31 December 2008, according to its annual accounts. The company, which also has a share in the Scottish express business Scottish Citylink, is owned by the Singapore-based bus and taxi group Comfort Delgro.

Anlaysis shows that revenue growth failed to keep pace with rising costs: revenue growth was restricted to roughly the prevailing level of inflation, but costs increased at more than double this rate, so driving operating profits down by 45% and margins to record lows.

The position was worsened by increased net interest costs, so that pre-tax profits were down by over 54% during the year.
For more details, visit the TAS Business Monitor website