Trading Statement

Trading update

29 March 2017

Introduction

Stagecoach Group plc is today (29 March 2017) providing a trading update in respect of its financial year ending 29 April 2017, ahead of a series of meetings with analysts.

Our expectation of the Group's adjusted earnings per share for the year ending 29 April 2017 has not changed from when we announced our interim results in December 2016.

Revenue

Like-for-like revenue movements for the financial year to date, compared with the equivalent period in the previous year, are provided below.

UK Bus (regional operations) - forty four weeks ended 4 March 2017 (1.7)%

UK Bus (London) - forty four weeks ended 4 March 2017 (0.9)%

North America - ten months ended 28 February 2017 (2.2)%

UK Rail - forty four weeks ended 4 March 2017 1.6%

Virgin Rail Group - forty four weeks ended 4 March 2017 5.3%

UK Bus (regional operations)

Total like-for-like passenger journeys fell by 1.7% in the UK Bus (regional operations) Division, largely as a result of weak underlying local economic conditions in some parts of the UK and sustained lower fuel prices. We continually review and adjust our bus networks in response to changing demand.

We are continuing to make progress with our digital investment programme, expanding contactless payments for bus travel, amongst other measures, to further enhance the quality of our bus and coach services.

We remain positive on the longer term opportunities within the UK Bus (regional operations) Division.

UK Bus (London)

As expected, UK Bus (London) Division revenue was 0.9% below the equivalent prior year period, reflecting the contract tenders concluded in the prior year.

North America

Trading at our megabus.com inter-city coach business in North America continues to improve from the positive action we have taken to match our services with changes in demand from customers. The market remains challenging due to the effects of sustained lower fuel prices, which have heightened car and air competition. The like-for-like revenue decline of 2.2% for the Division includes a 5.4% decline for megabus.com North America, but encouragingly revenue per vehicle mile was up 2.8%.

Trading at the other businesses in North America remains in line with our expectations. Like-for-like revenue at these businesses declined by 0.7%, largely reflecting reductions in mileage at our sightseeing business in California.

UK Rail and Virgin Rail Group

As we have previously highlighted, UK rail industry revenue growth has slowed over the last 18 months. Although there has been improvement in our growth rates, they remain low by historical standards. Like-for-like rail revenue growth in our own UK Rail Division (including Virgin Trains East Coast) was 1.6% in the forty four weeks, with revenue growth at our inter-city businesses continuing to out-perform growth at our London commuter business. As expected, revenue growth at Virgin Rail Group's West Coast franchise was higher than the industry average, which partly reflects revenues being adversely affected in the second half of last financial year by the temporary closure of Lamington viaduct in southern Scotland.

We continue to work constructively with the Department for Transport and other industry partners to meet our obligations, respond to variations in infrastructure and rolling stock plans, manage contract changes and ensure the continued stability and growth of our rail businesses.

Interim results

We expect to announce the Group's preliminary results for the year ended 29 April 2017 on 28 June 2017.

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investors and analysts

Ross Paterson, Finance Director 01738 442111

Bruce Dingwall, Group Financial Controller 01738 442111

Media

Steven Stewart, Director of Corporate Communications 07764 774680

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.