A NORTH-EAST bus operator is spending £90m on new greener vehicles as it marks a year of higher profits.

Stagecoach Group, which runs services across Teesside, Hartlepool, Sunderland and Newcastle, says it wants to get more people using public transport.

The move was revealed by bosses as they hailed increased revenues of £2.9bn for the year to April 30.

Pre-tax profits were two per cent higher at £180.7m.

Its regional bus division saw profits rise three per cent to £147.4m and carried more passengers than last year.

About 2.8 million passenger journeys are made on Stagecoach buses every day.

It said: "The market conditions are positive with a combination of a rising population, increasing road congestion, the cost of running a car and widespread concern for the natural environment providing good potential for increased bus use across the UK."

Stagecoach also operates about 2,400 buses and coaches in North America.