A GIANT bus company's profits are being hit by the long-running strike action at Stagecoach Ribble.

The firm's parent company Stagecoach plc told shareholders at their annual meeting that industrial relations problems in the bus division would have a financial impact on the company this year. The firm also said that passenger numbers were continuing to fall at its operations in the North.

Industrial disputes are taking place at Stagecoach Ribble -- which operates services throughout East Lancashire -- and a number of other businesses around the country. The firm has warned that continuing action could threaten services and lead to closure of depots but stressed today that no such decisions had yet been taken.

Drivers are demanding an extra 27p an hour, which they claim will bring them in line with the company's drivers in other parts of the country. A new offer lwas tabled by the company last month but it was rejected by 82 per cent of union members, who are still in favour of strike action.

Each of the 16 days of action to date has cost drivers around £50 in missed pay but they have vowed to fight on.