Interim Management Statement

Press Release

24 October 2013

THE GO-AHEAD GROUP PLC

("GO-AHEAD" OR "THE GROUP")

INTERIM MANAGEMENT STATEMENT

Robust performance in all divisions;

full year expectations remain unchanged

The Go-Ahead Group plc today announces its Interim Management Statement for the period from 30 June 2013 to 23 October 2013 ahead of its Annual General Meeting which will be held later today.

Trading in this first period has been robust and our expectations for the full year to 28 June 2014 remain unchanged.

David Brown, Group Chief Executive of Go-Ahead, said:

"Our bus and rail businesses have delivered a robust performance, in line with our expectations.

"Our bus division is performing well and we are on course to deliver our £100m target by 2015/16. Our high quality, locally-focused operations and sector leading marketing continue to drive our passenger numbers and we are making good progress with our cost efficiency programme.

"In rail, our bid team is working hard to deliver strong bids for the Thameslink and Crossrail franchise competitions and we have begun discussions with the Department for Transport regarding the proposed extension for Southeastern.

"Overall, I am pleased with the Group's performance and remain confident that the full year result will be in line with our expectations."

Bus:

Deregulated:Trading in our deregulated bus operations has been robust. Underlying revenue growth, which excludes the benefit of delivering transport for the Olympic sailing events at Weymouth last year, was in line with expectations for the quarter, at around 3.5%. Concessionary passenger volumes continue to grow at a slower rate than journeys made by fare paying customers.

First quarter growth rates*:

#The Olympic contract was on a gross cost basis. Passenger journeys were not recorded. 

Regulated:Performance in our London operations has been strong in the quarter, benefitting from one-off rail replacement services and slightly higher QICs bonuses. Underlying full year mileage is still expected to be broadly flat as we expect to retain a consistent level of contracts.

First quarter growth rates*:

Rail:

Our rail division operates the Southern (including Gatwick Express), Southeastern and London Midland franchises through our 65% owned subsidiary Govia.

Underlying revenue performance in our three franchises has been in line with our expectations. As in the fourth quarter of last year, reported passenger journeys across all companies increased significantly due to a change in Department for Transport methodology in Travelcard allocations.

First quarter growth rates*:

**Passenger revenue and journeys associated with the Olympic and Paralympic Games are based on estimates.Whilst trading in our rail division will remain challenging in the short term, we are committed to delivering long term value through operating in the UK rail market. We are working hard to submit strong bids for the Thameslink and Crossrail franchises, for which we are shortlisted.

Outlook:Overall, trading in the first quarter of the year has been robust and we remain confident that we will deliver a full year result in line with our expectations.

The Group remains in a good financial position with strong cash generation and a robust balance sheet, underpinning the dividend policy and allowing flexibility to pursue value-adding opportunities. We continue to focus on our key strengths of providing high quality, locally-focused and innovative transport services.

N.B. Our £100m bus operating profit target excludes amortisation and exceptional items

\* The Olympic and Paralympic Games impacted on growth rates in the first quarter of the prior financial year. They have therefore been excluded for comparative purposes in these underlying figures.  ENDS

Go-Ahead will be hosting a series of calls with analysts throughout the day.

For further information, please contact:

GO-AHEADGo-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 23,500 people across the country, over one billion passenger journeys are undertaken on our services each year. We are committed to operating our companies in a safe, socially and environmentally responsible way and are proud to have been reaccredited with Carbon Trust Standard after taking action on climate change. In addition to the travelling public, our customers include the Department for Transport, Transport for London (TfL) and local authorities.

BUSGo-Ahead is one of the UK's largest bus operators. With a fleet of around 4,400 buses, we carry nearly two million passengers every day. Our operations are focused on high density commuter markets. We have a strong presence in London, with around 24 per cent market share, where we provide regulated services for TfL. We operate deregulated services in Oxford, East Anglia, the South East, Southern and North East England. We also have a small yellow school bus joint venture in North America.

RAILThe rail operation, Govia, is 65 per cent owned by Go-Ahead and 35 per cent by Keolis. It is the busiest rail operation in the UK, responsible for nearly 30 per cent of all UK passenger rail journeys through its three rail franchises: Southern (which includes the Gatwick Express), Southeastern and London Midland. In December 2009, Southeastern began operating the UK's first high speed domestic rail service between Kent and London, significantly reducing journey times.

Legal disclaimerCertain statements included in this press release contain forward-looking information concerning the Group's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the sectors or markets in which the Group operates. By their nature, forward-looking statements involve uncertainty because they depend of future circumstances, and relate to events, not all of which are within the Company's control or can be produced by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Nothing in this press release should be construed as a profit forecast and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in The Go-Ahead Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. Except as required by law, the Company undertakes no obligation to update any forward-looking statement.