Arriva’s Leciestershire operations saw a 10% increase in operating profits during the year to 31 December 2008, according to its annual accounts.

The 254 vehicle business, smaller since the sale of its Hinckley depot and network to Centrebus, achieved a very small increase in revenue despite the shrinkage, but acheived a small saving in operating costs following the disposal. As a result, operating profits were 9.9% higher at £2.6m, and were achieved at a margin of 7.6%.

The improvement was further assisted by increased net interest earnings, so that pre-tax profits were 17% higher at £2.8m, at a margin of 8.2%.

For more information, see TAS Business Monitor.