Arriva Plc today announced pre-tax profits of 17 per cent for the last six months.

Publishing its interim results for the period January to June 2002, Arriva recorded profits of £41 million.

Earnings per share, before goodwill, were up 14 per cent and interim dividend was also up five per cent.

The results, hailed by Arriva chief executive Bob Davies, were greeted with anger by leaders of the Rail, Maritime and Transport Union (RMT).

Stan Herschel, York RMT organiser, branded the profits "obscene". He said it made his members more determined to continue strike action.

At Arriva Trains, operating profits were £5 million, slightly down on last year, on a turnover of £198.6 million (compared with £204 million in 2001).

Bosses said the financial impact of strike action at Arriva Trains Northern (ATN) had been partially offset by improved performance at Arriva Trains Merseyside.

The report also claimed that ATN had met all of its targets with the Strategic Rail Authority.

Mr Davies said: "Performance during the first half again demonstrated the underlying strength of the business.

"The strong cash flow has enabled us to exploit opportunities to expand our operations in mainland Europe."

But Mr Herschel said: "I think this is an obscenity. It is indicative of what has happened within the privatised industry. The company tells me that what our members are asking for is unrealistic, yet dividends have increased by five per cent. Conductors, station and clerical staff at ATN have been striking in protest at pay and conditions.

Julian Evans, director of corporate communications at ATN, said: "These results are good news for the 11,000 people we employ in the North of England. They are good news for customers and they are good news for our shareholders."

Updated: 11:35 Thursday, September 05, 2002