Bus and train group Go-Ahead today reported a rise in profits over the last year despite extra-ordinarily disruptive circumstances.

Pre-tax profits for the year to June 29 rose to £44.6 million, up from £43.1 million.

Stripping out one-off charges, profits rose 3.3 per cent to £49.4 million.

The group, which runs the Thameslink, South Central and Thames Trains franchises, was hit by disruption of the rail network following the Hatfield disaster and the high-profile problems suffered by Railtrack.

Its aviation business, which provides ground handling services, was hit by the post-September 11 impact on airlines.

The group's rail business made operating profits of £17.4 million, down from £17.9 million the previous year.

Its bus division, which includes services in Brighton and Hove, made profits of £33.3 million, up from £29.2 million.

The aviation business made profits of £4.7 million, up from £4.5 million.

Overall operating profits added up to £55.4 million, a 7.4 per cent rise on the previous year.

Go-Ahead said its rail division had been significantly expanded by buying South Central from Connex last year.

Last week, the group lost its battle to be awarded a 20-year franchise on the South Central line.

The Strategic Rail Authority (SRA) proposed GoVia, which runs the service and is owned 65 per cent by Go-Ahead, should run the franchise for only seven years.

The Thameslink franchise is due to end in spring 2004 and the group said the SRA intended to negotiate a seven-year replacement.

Chairman Sir Frederick Holliday said: "The change in the structure and length of the South Central and Thameslink franchises provides us with greater certainty of the group's prospects."