The group has announced Sir Brian Souter will step down as chairman on 31 December 2019 and will continue on the board as a non-executive director from 1 January 2020.

At the same time, long-serving non-executive director Dame Ann Gloag will retire from the board on 31 December 2019.

The moves reflect the significant changes over the past two years in the scale of the group and the markets in which it operates, such as Stagecoach’s withdrawal from the US and its mandatory departure from British railways.

However, the company now plans to enter into the European passenger transport market.

Shares in Stagecoach have been trading just above ten-year lows, falling around 70% from the company’s highs. Stagecoach is also now valued on the stock market at £750 million. Shares for the company closed up by nearly 9%.

Ray O’Toole, non-executive director, will be appointed independent chairman from 1 January 2020. He said: “The contributions of Sir Brian Souter and Dame Ann Gloag both to the public transport industry and to Stagecoach as co-founders, senior executives and directors cannot be overstated.

“The insight and wisdom of Sir Ewan Brown over his many years as a director of the company have also been key in its success. On behalf of the company, I extend my sincere thanks to all three of them and I look forward to continuing to work with Sir Brian and having access to his insight on the board.

“I am delighted to have the privilege of succeeding Sir Brian as chairman of Stagecoach, a company which continues to innovate and lead the sector, and deliver consistently for its customers. Most of my career has been in public transport and I am confident about the prospects for sustainable mass transit and for Stagecoach.”