Trading Statement

RNS Number:0980R
Stagecoach Group PLC
21 October 2003


COMPANY STATEMENT

21 October 2003

Ahead of its half-year close period and update meetings with analysts,
Stagecoach Group confirms that it has experienced strong trading in the year to
date.

The Group's UK, New Zealand and North American bus operations have continued to
trade in line with expectations, while the UK Rail division has performed ahead
of expectations.

South West Trains has made further improvement in its operational performance
and has continued to benefit from passenger and revenue growth since the start
of the financial year on 1 May 2003. This has been achieved despite the
unsatisfactory operational performance of Network Rail. Combined with our
continued focus on cost control, these factors have resulted in South West
Trains trading ahead of expectations. Accordingly, operating profit from our
Rail division for the year ending 30 April 2004 is expected to be ahead of
expectations and in line with the prior year level.

At Virgin Rail Group, our joint venture with Virgin Group, the business
continues to benefit from significant investment in new trains and focus on
service delivery. The two franchises are receiving subsidy based on a budget set
by the Strategic Rail Authority ("SRA") for the year ending 27 February 2004.
The business has been profitable in the first half of the year and financial
performance has exceeded the SRA's budget. However, due to the phasing of the
budget across the financial year, we still anticipate that Virgin Rail Group
will record a loss in the second half of the financial year, resulting in a
breakeven position for the year as a whole.

We have now largely completed our North American disposal programme, which has
generated more than US$300million in sales proceeds. Coupled with our continued
strong cashflows across our portfolio, reduced net debt and recent credit rating
upgrade to investment grade status, we remain confident about the future
prospects for the Group.

Stagecoach Group expects to announce its results for the six months to 31
October 2003 on 10 December 2003.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director, 01738 442111

Steven Stewart, Stagecoach Group, 01738 442111 or 07764 774680

John Kiely, Smithfield Financial, 020 7360 4900


                      This information is provided by RNS
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