Higher costs hit Arriva profits

The Cross Country franchise covers 1,600 miles

Higher interest rates, fuel bills and the costs of bidding for acquisitions and new franchises hit Arriva's profits in the first six months of this year.

The transport group's pre-tax profit for the half-year to 30 June fell to £47.3m from £48m for a year earlier.

This year, Arriva has won the Cross Country rail franchise from Virgin as well as making a number of acquisitions in continental Europe.

The Cross Country franchise runs from Scotland to the south of England.

The new Cross Country deal will also include Nottingham-Cardiff and Birmingham-Stansted services.

European acquisitions include 85% of a train company in Lower Saxony in Germany, a bus business near Prague in the Czech Republic, and a bus company in the Spanish capital, Madrid.