BUS giant Stagecoach - which runs services throughout Gwent - has said it has “firmly returned to growth” following recovering customer demand after the pandemic, as revenues rose to £1.2 billion.

The transport firm added that passenger journeys and commercial sales were at roughly 81 and 91 per cent of pre-Covid levels, respectively, for the week ended June 18.

The figures come just days after German asset manager DWS completed its takeover of Stagecoach in a deal worth £595 million.

Martin Griffiths, Stagecoach Group chief executive, said: “I am pleased to report that we have firmly returned to growth in the full year.

“We are in a good financial position, supported by recovering customer demand and continued investment grade credit ratings, as we look to the next phase of our journey under new ownership.”

The news comes days after the Argus reported how problems with staffing had hit the firm's bus services in Gwent - research found Stagecoach had been forced to cancel hundreds of services in the region in recent weeks because of "driver availability".

And on Wednesday, the Welsh Government announced a £48 million emergency support package to help the nation's bus firms after two years of pandemic-related difficulties.

Stagecoach boss Mr Griffiths said the company was “not immune from the global macro-economic headwinds”.

“However, we believe our good value public transport services offer consumers help in managing the cost-of-living challenges and high fuel and energy prices, supporting our ambitions around modal shift from car to bus,” he said.

The average price of diesel now stands at 199p a litre, a fraction of a penny below the record of 199.1p a litre set on Saturday.

The full-year figures follow a spate of tube and rail strikes that took place on June 21, 23 and 25, in which 80 per cent of services were disrupted.

Despite the transport giant’s profit hike, it said it would not resume dividend payments to shareholders.

“We will keep our dividend policy under review, taking account of the recent change in ownership of the company and a continuing commitment to seek to maintain an investment grade credit rating.”