Pre-close Trading Update

Press Release

23 June 2011

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

PRE-CLOSE TRADING UPDATE

Trading ahead of the Board's expectations

The Go-Ahead Group plc today announces its pre-close trading update for the year ending 2 July 2011 ahead of its full year results which will be announced on 1 September 2011.

Overall, we are pleased with the Group's performance and we now anticipate that the Group will deliver full year operating profit* ahead of our previous expectations.

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

"Since the depth of the recession in 2008, Go-Ahead has seen solid growth. Three things are driving growth - improving levels of quality, better marketing of our services, and the higher costs of motoring resulting in the public choosing the better value option of the bus.

"This is my last trading update before I retire from Go-Ahead. The business has a bright and profitable future and I wish my successor, David Brown, every success."

David Brown, who becomes Group Chief Executive on 5 July said:

"The business is trading strongly and has a solid foundation for the future. My aim will be to build upon the strengths of the business and to take advantage of the opportunities presented. We aspire to be the premier quality transport operator in the UK, driving value for both passengers and shareholders.

"Keith Ludeman has been an exceptional leader, and has ensured that even in midst of a recession, the business is strong and profitable. I would like to thank him and wish him good luck."

Bus

Our deregulated bus division has seen solid growth. We expect full year passenger revenue to increase by over 4% on a like-for-like basis (after adjusting for acquisitions) and passenger numbers to see growth of around 2%.

In our regulated London businesses, like-for-like full year operating revenue is expected to reduce by around 2%, with mileage remaining largely flat. However, following recent contract gains, we expect to see mileage and revenue growth next year.

During the period, we acquired Thames Travel (Wallingford) Limited, a bus company based in Wallingford Oxfordshire. Thames Travel carries around 1.25 million passengers per year in South Oxfordshire and West Berkshire and generates turnover of around £6m.

Rail

The Southern franchise continues to perform in line with bid assumptions. We anticipate full year like-for-like passenger revenue and number growth of around 9% and 3% respectively. We continue to drive growth through our ongoing franchise initiatives such as marketing and ticketing innovation.

Despite remaining in 80% revenue support, like-for-like growth in Southeastern's passenger revenue and numbers remains strong, with full year expectations at around 9% and 4%, respectively.We continue to expect that Southeastern will remain in maximum revenue support until the franchise ends in March 2014.

London Midland's operational performance continues to improve and we expect to see passenger revenue growth of around 8% in the year, with passenger number growth of around 6%.

As previously announced, full year rail operating profit* will include £9m of contract management benefit, which was achieved in the first half of the year. A further non-recurring contract management benefit of £4m is expected to be realised in the fourth quarter of the year.

Outlook

Overall, we are pleased with our performance and we anticipate that the Group will deliver full year operating profit* ahead of our previous expectations, principally driven by strong rail performance.

Whilst we are encouraged by our performance this year, we remain suitably cautious on the medium term wider economic outlook.

*before amortisation and exceptional items.

ENDS

For further information, please contact:

The Go-Ahead Group

Keith Ludeman, Group Chief Executive 020 7821 3920

Keith Down, Group Finance Director 020 7821 3922

John 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-AheadGo-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 22,500 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 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 Oxford, East Anglia, 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.