ARRIVA became the latest transport group to report rising profits from its rail operations.

The Sunderland-based company, which runs trains in Wales, said its rail division boosted operating profits by 31pc to £31.5 million in the year to December 31.

Last month, National Express said its trains arm had increased profits by 76pc on the back of higher passenger numbers.

Arriva said it had also seen the growth in passengers and revenues being experienced across the railways, with turnover up to £509 million from £433.3 million last time.

It said Arriva Trains Wales (ATW) was performing in line with expectations while Arriva Trains Northern, which it was responsible for running until December, had achieved the highest punctuality and reliability since privatisation in 1997.

Arriva's new franchise in Wales has faced criticism from passenger watchdogs for containing little in the way of major improvements such as new trains.