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Company accounts have revealed Stagecoach took £35m out of one rail franchise months before abandoning another.

The transport giant was paid the hefty dividend from the East Midlands Trains franchise.

The Mirror reports the sum is a massive £20m increase on the previous year's payment, and was paid less than a year before the company abandoned the London-to-Edinburgh East Coast Main Line franchise last year.

Passengers protested last week over the average 3.2% increase in fares, and it has since emerged hundreds of station car parks will also raise prices.

Charges at Southern, Great Northern, Thameslink and Gatwick Express services increased by 3.2% from Monday.

Passengers on LNER services also face higher peak-time parking prices, and Labour has slammed the multi-million pound dividend payout.

Labour’s Shadow Transport Minister, Andy McDonald, said: “These dividend payments to shareholders are a major kick in the teeth for passengers who have just been forced to suck up another unfair rise in rail fares.

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“Profit has been privatised, whilst loss-making franchises are just handed back to the Government, no questions asked.”

Last February, Transport Secretary Chris Grayling said Stagecoach, which operated the line in conjunction with Virgin Trains, was incurring “significant losses” and would not be able to continue the franchise.

It was taken into public control in May.

A Stagecoach Group spokesperson said: "The East Midlands Trains franchise has delivered industry leading levels of performance over the last ten years and customers have benefited from millions of pounds of investment to improve services. We have also continued to pay substantial premiums to Government.

"As with any private company, and as per our contract with the Department for Transport, it's normal practice that dividends are paid out to shareholders where applicable."