Strike-hit train company Arriva has posted a nine per cent rise in pre-tax profits and increased its annual payout to shareholders.

The rise in profits has angered members of the Rail Maritime and Transport union (RMT), which has called for fresh strikes against the Sunderland-based company.

Arriva said its rail division achieved operating profits of £11.5m, compared with break-even last time.

That contributed to pre-tax profits before exceptional items of £92m as Arriva also lifted its total dividend payout by five per cent to 16.4p a share.

Sunderland-based Arriva defended its financial position and described its three per cent pay offer and five per cent productivity linked increase as "fair and reasonable".

A spokesman said the company was disappointed that unions had just agreed to further industrial action: "We believe their demands are unrealistic."

Arriva Trains Northern is set to be hit by fresh industrial action, with a 24-hour walkout on March 28 and two 48-hour stoppages on April 5-6 and May 4-5.

Bob Crow, general secretary of the RMT said: "Our members at Arriva were already in a determined mood. Now they will be outraged.

"A company making big league profits and paying fat dividends to shareholders should be ashamed of its insulting pay offer to the people who actually do the work. It is time for Arriva to pay up."

The rise in profits at its UK trains business comes after the company revised financial terms with the Strategic Rail Authority.

But the division, which also includes commuter services on Merseyside, has also inherited a shortage of train drivers and was recently forced to scale back timetables as a result.

Yesterday it said the majority of services had been restored after one of the biggest recruitment campaigns seen in the rail industry.

Around 120 new drivers went through the 12-month training process last year, while another 170 are expected to complete the programme this year.

Arriva said the short-term nature of its franchises had also created significant difficulties for the division.

Meanwhile, it was the group's bus operations which provided the backbone of the group, with operating profits broadly unchanged at £68.4m

Arriva's fleet of 6,000 vehicles serve customers in several areas of the UK, including the North-East, Yorkshire, London and Scotland.

The increase in turnover to £548.6m from £520.5m was offset by increased labour and insurance costs.

Arriva said it was operating in a "mature market" but believed the performance of its London bus division showed there were opportunities for growth elsewhere in the country.

The company also operates a UK motor franchise network from 33 locations. The division, which has relationships with 13 manufacturers, including BMW and Ford, lifted operating profits to £9.5m from £7m last time. .