Interim Management Statement

THE GO-AHEAD GROUP PLC ("Go-Ahead" or the "Group")

INTERIM MANAGEMENT STATEMENT

 Trading ahead of the Board's expectations

The Go-Ahead Group plc today announces its Interim Management Statement for the period from2 January 2011 to 4 May 2011.

Overall, the Group's third quarter trading, to 2 April 2011, was strong and we now anticipate that the Group will deliver full year operating profit which is ahead of our previous expectations.

We continue to see impressive growth across all of our businesses. In the quarter, passenger numbers on our deregulated bus services were up by 7.2% and on rail by 5.8%. This is a result of effective marketing, a continuing shift away from cars and onto buses and trains, and initiatives such as smartcard ticketing which we have begun to roll out across all our operations.

Keith Ludeman, Group Chief Executive of Go-Ahead, said:

"Once again, we have seen a strong performance across our businesses. The continued growth in bus passenger numbers demonstrates that the public are increasingly leaving their cars at home. The public is struggling with the current high levels of fuel pricing and many are now choosing the better value alternative of the bus.

"The growth in passengers on our trains - many of which serve London - also suggests that employment levels and discretionary journeys remain robust in the capital. 

"While there is much to be positive about in today's trading update, we continue to remain cautious about the medium term prospects for the wider economy."

Bus:

Our bus operations continued to perform well.

Revenue in our deregulated bus operations increased by 9.8% in the quarter, or 8.3% after adjusting for acquisitions. Passenger numbers were up 7.2%, or 5.4% after adjusting for acquisitions. Approximately 80% of the like-for-like growth in revenue was as a result of an increase in fare paying passengers, an indication of modal shift in a period with high fuel prices; the rest of the growth came from concessionary fares. In our regulated London businesses, operating revenue in the third quarter increased by 2.7%. We continue to drive quality incentive revenue through our focus on operational performance.

Our fuel requirements of approximately 115m litres per annum are fully hedged for the current and next financial years at an average of 41p per litre, and are currently 25% hedged for the following year at an average of 42p per litre.

In North America, our 50:50 yellow school bus joint venture continues to make good progress and is performing in line with our expectations.

Rail:

Revenue continued to grow in line with our expectations in the rail division, which operates the Southern, Southeastern and London Midland franchises through our 65% owned subsidiary Govia.

The Southern franchise continues to perform well and in line with the bid assumptions. Third quarter passenger revenue growth was 11.6%, with a 2.3% increase in passenger numbers being driven by ongoing franchise initiatives such as marketing (particularly around our off peak services), and ticketing innovation. Gatwick Express, part of the Southern franchise, saw healthy growth in the quarter.

In Southeastern, third quarter growth in passenger revenue and numbers was 7.5% and 7.6% respectively. During the quarter, Govia was pleased to accept the invitation from the Department for Transport (DfT) to continue operating the Southeastern franchise for a further 24 months. The franchise will now run until March 2014. As previously reported, Southeastern has been in 80% revenue support since 1 April 2010 and we expect it to remain so for the remainder of the franchise.

In London Midland, passenger revenue grew at a rate of 11.2% in the third quarter, with passenger number growth of 11.0%. We are pleased with the improvement in the operational performance of this franchise and remain focused on cost control.

The Group was delighted to be shortlisted for the Greater Anglia franchise during the quarter.

Financing:

Our cashflow remains strong and our balance sheet is robust. Our year end net debt remains in line with expectations.

Outlook:

Overall, the Group's third quarter trading to 2 April 2011 was strong and we now anticipate that the Group will deliver full year operating profit which is ahead of our previous expectations.

We continue to emphasise service quality, efficiency and financial discipline. While there is much to be positive about in today's trading update, we continue to remain cautious about the medium term prospects for the wider economy.

ENDS

For further information, please contact:

The Go-Ahead Group Keith Ludeman, Group Chief Executive 020 7821 3920Keith Down, Group Finance Director 020 7821 3922John Shield, Group Corporate Affairs Director 020 7821 3927 Holly Birch, Interim Group Communications & Investor Relations Manager 020 7821 3929

Citigate Dewe Rogerson 020 7638 9571Michael Berkeley Chris Barrie Angharad Couch

Notes to Editors

Go-Ahead

Go-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 22,000 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 awarded the 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.

BUS

Go-Ahead is one of the UK's largest bus operators. With a fleet of around 3,800 buses, we carry, on average, around 1.7 million passengers every day. Our operations are focused on high density commuter markets. We have a strong presence in London, with around 21% market share, where we provide regulated services for TfL. We operate deregulated services in the Oxford, the South East, Southern and North East England. We also have a yellow school bus joint venture in North America.

RAIL

The rail operation, Govia, is 65% owned by Go-Ahead and 35% by Keolis. It is the busiest rail operation in the UK, responsible for nearly 30% 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 disclaimer

Certain 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.