The company, floated in November last year, saw profits shoot up on the back of acquisitions of two regional bus companies, Stoke-on-Trent-based PMT Group and Yorkshire-based Rider Group, during the year. They contributed a combined pounds 2.3m.
Jim McLoughlin, Badgerline's finance director, said the company would continue to look for opportunities to acquire urban bus businesses.
He said continuing operations were carrying 2 per cent more passengers than last year. 'This is related to the use of frequently run smaller buses. These are more user-friendly as they involve less waiting time.'
Figures for the year to December showed a pounds 930,000 loss after a pounds 7.8m write-down in the value of a former bus depot site in Bath after plans to sell it to a supermarket group fell through when planning permission was refused.
The shares eased 6p to 119p. Mark Laurence, an analyst with Smith New Court, said: 'There are a lot of operating efficiencies still to come through.' He is estimating full-year profits of pounds 16m, giving a prospective p/e of 12.6.