BUS and train operator FirstGroup expects no long-term harm to passenger numbers from the extensive repairs and disruption on the railway network since the recent Hatfield rail crash.

Chief executive Moir Lockhead conceded its rail business, including the First Great Western franchise involved in last year's Paddington rail crash, had been severely affected by the repairs as well as the extensive flooding.

While the company would need to keep a close eye on numbers, he expected passengers would return and not be lost to the roads or other forms of transport.

Announcing the group's s results Mr Lockhead said: "The recovery in patronage is normally very quick and very much stronger than expected."

Any impact from the repairs during the last two weeks would also not affect the company's bottom line, as it would be fully compensated for any disruption from railways operator Railtrack.

Mr Lockhead said he was very pleased with the group's performance over the past six months, particularly its US bus operations, which saw growth running ahead of expectations.

Group pre-tax profits for the six months to September 30 came in at £56.8m, against £52.7m at the same point last year.

Turnover increased to £991.2m, compared with £766.5m.

UK rail revenues in the period saw strong growth, with turnover rising to £365.3m, against £350.6m last time.

Operating profits for the rail division increased to £26.9m, against £17.9m.

In its UK bus business, a 12-week industrial dispute over pay at First Manchester, of which 10 weeks were in the period, cost the company between £2m and £2.5m.

The impact of this dispute, which had now been settled, meant operating profits fell to £47.4m, against £50.8m.

Rising fuel prices would also mean higher fares next year, warned Mr Lockhead, with fares rising by around 5p from next April.

The increase in pre-tax profits will see shareholders benefit with an 11 per cent increase in the interim dividend, up to 3.0p, compared with 2.7p last year.