Shares in transport operator Stagecoach (LON:SGC) rose over 5 percent on Wednesday morning, after the extension of its East Midlands train franchise and further negotiations with the Department for Transport.

Stagecoach released their six months results for the period to the end of October, with earnings per share in line with the group’s expectation at 13.6 percent. Profit also increased over the period to £96.7 million, up from £89.5 million over the same period last year.

Investors were boosted by Chief Executive Martin Griffiths’ comments over the future of the company:

“We have made positive progress across our businesses. In UK rail, we are working with the Department for Transport towards new contracts at Virgin Trains East Coast and Virgin Trains West Coast.

“Our East Midlands Trains franchise has been extended through to March 2019, with the prospect of us agreeing a further direct award franchise from March 2019, and we are part of shortlisted bids for new South Eastern and West Coast Partnership franchises.”

Stagecoach is an international public transport group, with operations in the UK, the United States and Canada. Stagecoach is one of the UK’s biggest bus and coach operators with over 8,000 buses and coaches on a network stretching from south-west England to the Highlands and Islands of Scotland, as well as a major UK rail operator, running the East Midlands Trains network.

Shares in Stagecoach (LON:SGC) are currently trading up 5.50 percent at 186.10 (1104GMT).