Interim Management Statement

8th March 2010

Stagecoach Group plc

Interim Management Statement

Stagecoach Group plc ("the Group") is today publishing an interim management statement, covering available information for the period since 1 November 2009 to the date of this announcement. 

The overall profitability of the Group since 1 November 2009 has remained in line with management's expectations.

Like-for-like revenue growth* for the financial year to date in each of the Group's main businesses is provided below. Revenue in December and January was adversely affected by unusually severe weather conditions.

UK Bus - forty weeks ended 7 February 2010 3.4%

UK Rail - forty weeks ended 7 February 2010 2.1%

(excluding tram businesses)

North America - nine months ended 31 January 2010 (5.2)%

(including Megabus.com)

Virgin Rail Group - forty weeks ended 7 February 2010 8.8%

Financial position

The Group's financial position remains strong and we have significant committed, undrawn bank facilities. In December 2009, the Group issued £400m 5.75 per cent. bonds with a seven-year term. The new issue of bonds extended the average duration of the Group's debt. The proceeds of the issue were principally used to repay existing bank borrowings and the Group has subsequently cancelled part of its undrawn bank facilities. In connection with the issue of the bonds, the Group adjusted its interest rate management arrangements. Certain of the Group's interest rate swaps became ineffective and were cancelled, resulting in a one-off charge of approximately £20m. This was part of ensuring an appropriate interest rate profile going forward.

On 12 February 2010, the Group declared a second interim dividend of 4.5p per ordinary share in addition to the first interim dividend of 2.0p per share declared in December 2009. In the light of this, the Group would not expect to pay a final dividend in respect of the year ending 30 April 2010.

Other events

As previously reported, Stagecoach South Western Trains is in dispute with the Department for Transport over the determination of franchise payments, including revenue support payments. The disputes are subject to Railway Industry Dispute Resolution. The Department for Transport requested additional time to prepare its case and the arbitrator agreed to this with the hearing now scheduled for May 2010. We would expect a decision on the matter in summer 2010. There is no change to the Group's confidence in its position or to the timing of any cash flows in respect of revenue support payable to Stagecoach South Western Trains.

Notwithstanding the continued, uncertain economic outlook in the countries in which the Group operates, overall current trading remains in line with our expectations and we believe the prospects for the Group remain positive.

* 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.

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Martin Griffiths, Finance Director 01738 442111

Steven Stewart, Director of Corporate Communications 07764 774680

Stagecoach Group

Stagecoach Group is a leading international public transport group, with extensive bus and rail operations in the UK and North America.

Cautionary Statement

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.