Interim Management Statement

Interim Management Statement

19 August 2011

Stagecoach Group plc ("the Group") is today publishing an interim management statement, covering available information for the period since 30 April 2011 to the date of this announcement.

Financial performance 

The Group has performed well since 30 April 2011 and remains on course to meet its expectations of profitability for the year ending 30 April 2012.

Like-for-like revenue growth in each of the Group's main businesses is provided below.

UK Bus - twelve weeks ended 24 July 2011 2.0%

UK Rail - twelve weeks ended 24 July 2011 8.4% (excluding tram businesses)

North America - three months ended 31July 2011 12.7%

Virgin Rail Group - twelve weeks ended 24 July 2011 11.1%

Financial position 

The Group's financial position remains strong and we have significant committed, undrawn bank facilities. Today, the Group has separately announced proposals to return approximately £340m to shareholders.

Other significant events

On 6 May 2011, the Competition Commission announced theprovisional findings of its Local Bus Services Market Inquiry. The Commission is not proposing any fundamental change to the regulatory structure of the industry and ruled out both price controls and forced divestments of bus operations.

The Group's joint venture, Virgin Rail Group, operates the West Coast rail franchise that is due to end on 31 March 2012. On 19 May 2011, the Group confirmed that Virgin Rail Group was in discussions with the Department for Transport regarding an extension of the current franchise to 8 December 2012. Those discussions are continuing and the Group remains confident that the parties will reach an agreement on an extension. Separately, Virgin Rail Group continues to develop its bid for a new West Coast Rail franchise. The new franchise is due to start on 9 December 2012 and run until 31 March 2026, with an option for it to be extended by up to 20 months.

Outlook 

The outlook for the Group remains positive and is consistent with that set out in the Group's Annual Report for the year ended 30 April 2011.

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Analysts

Martin Griffiths, Finance Director 01738 442111

Ross Paterson, Director of Finance & Company Secretary 01738 442111

Media

Steven Stewart, Director of Corporate Communications 07764 774680

John Kiely / Will Swan, Smithfield 020 7360 4900

Notes

(1) Like-for-like revenue growth is derived, on a constant currency basis, by comparing year-to-date revenue with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods.

(2) This announcement contains certain forward-looking statements with respect to the financial performance, financial position and businesses of Stagecoach Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Stagecoach Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.