SUNDERLAND transport group Arriva is poised for further European expansion this year.

Yesterday, Arriva became the latest transport group to report rising profits from its rail operations, and chief executive Bob Davies said shareholders could expect to see more acquisitions on the Continent this year.

Yesterday's figures showed that the European operations account for nearly a third of profits. Mr Davies said that was likely to increase this year.

The rail division boosted operating profits by 31 per cent to £31.5m in the year to December 31.

The Arriva Trains Northern franchise, which it was responsible for running until December, had achieved its highest punctuality and reliability since privatisation in 1997.

Arriva also saw a growth in passengers and revenues on the railways, with turnover up to £509m from £433.3m last time.

The rise in rail profits contributed to a 15 per cent increase in group profits to £116.3m.

Arriva's bus operations across the UK, including in Durham, also performed well, with operating profits rising by nine per cent to £62.6m.