ARRIVA AT CROSSROADS

The rail and bus firm’s shares slid 16p to 406p after it said profits from its CrossCountry rail franchise would be affected if current trends continued. It saw revenue growth slow from 4.5 per cent in the quarter to April 4, to 2.4 per cent for the five months to the end of May.

Arriva needs to grow revenues at around 10 per cent this year to maintain profit at the same level as 2008. The company runs services between Penzance and Aberdeen, and is heavily dependent on the leisure market.

It said: “The results will reflect the lower revenue growth in CrossCountry, and are otherwise expected to be broadly in line with overall expectations.”

It said it had enjoyed strong trading in its UK bus division, but declined to comment on FirstGroup’s bid for National Express and whether it was interested in becoming involved in sector consolidation.