Stagecoach Group PLC InterCity East Coast rail franchise (5122F)

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RNS Number : 5122F

Stagecoach Group PLC

20 February 2015

20 February 2015

Stagecoach Group Plc

InterCity East Coast rail franchise

Stagecoach Group plc ("Stagecoach") welcomes the announcement by the Competition and Markets Authority ("CMA") that it has reasonable grounds to believe that the undertakings proposed by Stagecoach in respect of the award of the new InterCity East Coast franchise ("ICEC") to its venture with Virgin, Inter City Railways Limited ("ICR") are acceptable.

The Department for Transport ("DfT") announced the award of the franchise to ICR on 27 November 2014. Stagecoach holds 90% of the share capital of ICR and Virgin holds the remaining 10%.

The CMA is required by law to carry out a "Phase 1" review of all UK rail franchise awards. It identified limited issues in respect of ICEC. The CMA has now indicated that there are reasonable grounds to believe that, subject to consultation, the undertakings that Stagecoach proposed address the issues identified by the CMA.

Stagecoach and Virgin have worked closely with the existing operator of the franchise in preparation for the start of the contract on 1 March 2015. Both partners are finalising arrangements to ensure a smooth transition for customers and employees and the running of services under the Virgin Trains East Coast brand as planned.

ENDS

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: 01738 442111 or 07764 774680

This information is provided by RNS

The company news service from the London Stock Exchange

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