NORTH-EAST Transport group Go-Ahead has reported an increase in train passenger numbers despite the disruption caused by post-Hatfield repairs.

Go-Ahead, the operator of Thames Trains and bus services throughout the North-East, said usage rose 5.8 per cent in the year to June 30, although that was short of the double digit growth previously expected by the group.

The Newcastle company, which also runs London's Thameslink service, said operating profits in the division had lifted to £18.9m from £14.4m last time.

Chris Moyes, deputy chief executive, said: "We have benefited from the fact the railways we run are commuter railways and people have kept on travelling.

"If things had gone ahead without the Hatfield disruption, we would have doubled our passenger numbers."

Go-Ahead said it had received an undisclosed amount in compensation from Railtrack to cover disruption following track repairs in the wake of last autumn's Hatfield accident.

However, the company's train operations also paid out claims to passengers and were fined for poor performance.

The Govia venture, which involves French state railway firm SNCF, has won the franchise to operate the former Connex South Central service.

Mr Moyes said yesterday the operator would "get back to basics" and planned 700 new vehicles, at a cost of £560m, to improve the London commuter service.

The company's bus division was hit by a tough start to the financial year, with the performance affected by cost pressures and labour shortages.

However, operating profits lifted slightly to £31.4m, from £30.9m, after some of the problems were addressed in the second half.

The company said it would benefit from London Mayor Ken Livingstone's promise to expand London bus services, although it warned that a shortage of drivers could hamper that growth.

Sir Frederick Holliday, chairman, added: "Staff recruitment, training and retention form the key action plan in our metropolitan bus companies."

Go-Ahead's turnover increased 7.6 per cent to £588.4m, while pre-tax profit was ahead by 8.6 per cent at £44.1m.