Report fuelsgreendrive

New serviceproves amega-hit

The newspaper of

Stagecoach Group

Issue 53

Winter 2003/04

Virgin Trains’ fleet ofPendolino tilting trains for theWest Coast Main Line hasclocked up more than onemillion miles since the firstpassenger services to theCommonwealth Games inManchester in July 2002.

Almost 80 per cent of themileage has beenaccumulated in passengerservice and the remainder indriver training.

Pendolino trains nowoperate almost one in threeWest Coast Main Line services,and link London Euston withthe West Midlands, Liverpool,Manchester, Preston andCarlisle.

Each train has so fartravelled around 70,000 miles.

One millionon the clock

South West Trains’ new state-of-the-art Desiro fleet is nowofficially on track.

Secretary of State forTransport Alistair Darling MPpraised the new trains at thelaunch in October, highlight-ing the benefits they willbring to Britain’s railpassengers

The £1 billion fleet is thebiggest order for trains theUK has seen and their arrivalon Britain’s tracks followed arigorous testing schedule andthe implementation of thehighest levels of training andservicing.

South West Trains’Managing Director AndrewHaines described the firstpassenger journey as “animportant milestone” andstressed the need to keep upthe momentum to build onthe progress alreadyachieved.

Desiros on track – centre pages

Desiros glideinto service

On Stage has uncovered yet anothercontender for the title of Stagecoach’sbiggest fan.

William Brown, from Kirkcaldy, Fife,has had a 19-year passion forStagecoach, inspired by his mother andstep-father working for the company.

He has a remarkable collection ofStagecoach memorabilia, whichincludes more than 100 model busesand coaches, a bookcase stuffed withpictures of buses he’s photographed,postcards, old uniforms and even ourvery own ‘On Stage’.

His favourite items are undoubtedlythe model buses, many of which he hashad repainted by one of his friends. Thisallows him to keep his collection up todate with the latest models and liveries.

William also takes time out to travelto Glasgow and Edinburgh to

photograph Stagecoach buses as well asthose of rival companies.

He said: “My ambition for the futureis to keep expanding my collection.One of my favourite buses is thePlaxton Premier.

“However, the best thing I think thecompany has done is introduce the newYellow Taxibuses, which givepassengers more variety.

“From travelling around I know mostof the drivers in Fife and I’ve even metBrian Souter on a couple of occasions.”

Kirkcaldy’s William Brown shows off his favourite Plaxton bus and even some issues of On Stage.

Strong results boostconfidence in future

Fan-tastic collector!

Stagecoach has impressedanalysts and the media with a

strong set of results for the firsthalf of the 2003-04 financial year.

The Group reported an increase inoperating profits on the same period last yearat its continuing UK Bus, Rail, Coach USA andNew Zealand operations.

Commentators were impressed by theturnaround in the company’s fortunes from 12months ago when work was yet to start on amajor restructuring at Coach USA.

Since then the Coach USA strategy haslargely been delivered, new franchises havebeen signed for South West Trains and IslandLine, and the Citybus operations in Hong Konghave been sold.

Growth in passenger volumes and revenuesat Stagecoach’s UK Bus and Rail operationswent down well with City analysts at the pres-entation of the results for the six months to 31October 2003.

Revenue from London bus business was up19.8% and there was solid 1.3% increase inpassenger numbers at Stagecoach’s provincialbus operations.

Other highlights of the results included:• further growth in New Zealand;• a massive 62% reduction in the

Group’s net debt;• a 12.5% increase in the dividend to

shareholders.Stagecoach Chief Executive Brian Souter

said: “These are a strong set of results andreflect the further significant progress we havemade across the Group in the past six monthsin delivering on our strategy.

“Our growth prospects are good and ourinnovative approach to attracting passengers topublic transport is beginning to deliver goodresults.

“The restructuring of our Coach USAoperations is nearing completion and we arevery focused on delivering value from thestrong businesses we have retained in theNorth East and North Central regions of theUnited States, and in Canada

“We now have a strong portfolio of cash-generative businesses and good potential forfurther growth.”

Back on track – page 10

Coach USA played a vital part inensuring the success of a Royalvisit to Uniontown, Pennsylvania.

Its Western/Pennsylvaniacompany, Central Cab, providedfour 55-seat coaches to transportaround 200 dignitaries to adedication ceremony for theMarshall Memorial Plaza and theunveiling of a plaque by HRHPrince Andrew, the Duke of York.

Before the ceremony, thePrince attended a fund-raisinglunch at the Uniontown CountryClub, attended by the dignitaries.

Apart from the rainy weather,everything went to plan and thedelegates were able to watch thePrince perform his duties.

The plaque commemoratesthe 50th anniversary of theMarshall Scholarships, whichwere set up by the BritishGovernment in 1953 as a ‘thankyou’ to George C. Marshall for hisleadership during the SecondWorld War.

Up to 40 scholarships areawarded annually to US collegeundergraduates to study at UKuniversities.

Coach USA’sRoyal date

A tale to tell?

Is William Stagecoach’s biggest fan? Ifyou know someone who can challengehim let us know. You can find your OnStage contact listed on p2.

2

ContactsThe Editor, On Stage, Stagecoach Group, 10 Dunkeld Road, Perth PH1 5TW.Tel: +44 (0)1738 442111, Fax: +44 (0)1738 580407

www.stagecoachgroup.comIf you have a story for On Stage please get in touch withyour local contact below.

Stagecoach Group Steven Stewart 01738 642040

UK BusStagecoach East Scotland Lisa McCloy 01592 261461Stagecoach West Scotland Emma McNae 01292 613515Stagecoach North East Paul de Santis 0191 566 0209Stagecoach North West Colin Nicholson 01772 255752Stagecoach Manchester Karen Best 0161 276 2727Stagecoach East Midlands Phil Cartwright 01246 222018Stagecoach South Midlands David Whitley 01865 716030Stagecoach East Philip Norwell 01604 676060Stagecoach West Anne Dickinson 01242 545224Stagecoach Wales Stephen Evans 01291 623565Stagecoach London Benjamin Franklin 020 8477 7249Stagecoach South East Helen Martin 01243 536161Stagecoach South Helen Martin 01243 536161

Stagecoach South West Mark Whittle 01392 889747National Transport Tokens Sajda Khan 01254 680180

UK RailSouth West Trains Kathryn Rowe 0207 620 5238Island Line Stephen Wade 01983 812591Stagecoach Supertram Julia Shaw 0114 2759888

OverseasCoach USA Patty Kalich 001 713 860 1763New Zealand Dennis Elliot 00 649 309 3500

On Stage is published four times a year.Advertising connected directly or indirectly with Stagecoach is

accepted. Charitable adverts will be included without charge, otherwise

rates on request.On Stage is distributed free to Stagecoach staff. Public subscrip-

tions are available at £12 for one year or £20 for two years. Chequepayable to Stagecoach Group plc at the editorial address. TheEditor is unable to enter into individual correspondence concerningthe affairs of The Stagecoach Group.

Designed by Catchline PR and Communications, Scotland.

Winter 2003/04

Stagecoach is determinedto win back its position as

the No.1 transport operator.That was the upbeat message

from Stagecoach Chief ExecutiveBrian Souter at the Group’s recentcorporate conference.

Senior managers from the UKbus and rail divisions, as well asrepresentatives from North Americaand New Zealand, gathered inLondon to exchange ideas onsuccessful projects and discuss theway forward.

Brian told delegates that the keyto re-establishing Stagecoach as amarket leader lay with people,products and politics.

As well as developing new ideasand products, he stressed theimportance of getting the basicsright. He also highlighted theGroup’s sound financial shape,thanks to reduced overheads andeffective debt management.

Brian paid tribute to thecommitment of key personnel at

‘We will be No.1 again’pledges Stagecoach bossThe management team changes at

Stagecoach West have now beencompleted with the appointment ofSholto Thomas as OperationsDirector.

Sholto joins Stagecoach fromStrathtay Bus and Coach where hehas held the post of CommercialDirector for the past 17 years.

He succeeds Bob Dorr, whojoined the company from theYorkshire Traction group three yearsago. Bob is returning to his homecounty to take up a role withLincolnshire County Council.

Other management changes at thecompany include the appointment ofRupert Cox, a Stagecoach GroupGraduate trainee, as CommercialManager, whilst Richard Hall movesfrom Cheltenham to Swindon depotas Operations Manager.

Sarah Allman, who waspreviously Operations Manager forWorthing and Lewes at StagecoachSouth, succeeds him.

Rebecca Poole becomes AssistantOperations Manager for Stroud andSwindon, transferring fromStagecoach North West.

West ringsthe changes

Graham Eccles, an ExecutiveDirector of Stagecoach Groupand Chairman of South WestTrains and the Virgin Rail Group,has taken on a four-day-a-monthadvisory role for Network Rail.

Graham, who has 42 years’experience in the rail industry,will help Network Rail developits train operations structure andprocedures after the decision totake all maintenance in-house.

He will fulfil the advisory rolewhile continuing with his otherStagecoach duties.

Graham offersexpert advice

‘It is crucial to continueto work hard to recruitand retain high-quality,motivated people’

Brian Souter

Coach USA during the currentrestructuring programme and said:“The priority now is to complete thejob at Coach USA and developorganic growth at the residualbusinesses in the United States.”

He said Stagecoach New Zealand

was an excellent example ofachieving year on year success bygetting the basics right, adjusting tothe economic environment anddeveloping strong relationships withlocal and national decision-makers.

Turning to the UK, Brian said

Stagecoach was at the forefront ofrail development, with the biggestcommuter franchise and the bestinter-city business.

“Stagecoach is changing theprofile and image of bus travel withnew products and a more joined-upapproach. It is crucial to continue towork hard to recruit and retainhigh-quality, motivated people,” hesaid.

During the conference, thesenior management team, includingFinance Director Martin Griffithsand Executive Director of RailGraham Eccles, answered questionsabout the company’s businesses inthe UK, North America and NewZealand and the overall direction ofthe Group.

Stagecoach Group ChairmanRobert Speirs wrapped up theconference with a clear message:“We have a tremendous platformfrom which to move forward.Everyone has a part to play inmaking sure Stagecoach is the best.”

Staff box cleverStaff at Stagecoach Group’s head-quarters in Perth have collectedboxes of aid to help the needy ineastern Europe.

More than 22 boxes werecollected by Stagecoach employeesas part of the Shoebox Appeal, ledby the humanitarian charity,Blythswood Care.

Last year, the charity deliverednearly 1,000 tonnes of aid in over84,000 shoeboxes to needy peoplein 13 countries – and a target of100,000 boxes has been set for 2003.

Boxes have contained everythingfrom a bar of soap or a pair of socksto a toothbrush or a small toy –things that are simple necessities tous but luxuries to many in EasternEurope.

Driver goes on the runA visually-impaired passengerinspired Stagecoach Bluebird’sGary Mole to get out of thedriving seat and into a pair ofrunning shoes to raise money forcharity.

Gary, who has been with thecompany since April 1999,recently completed the GreatNorth Run – 13.1 miles aroundNewcastle and South Shields – inthe admirable time of two hours30 mins, realising £250 for GuideDogs for the Blind in the process.

He chose the charity becauseof a regular Stagecoachpassenger, Eric Bedford, ofCollege of Roseisle, Morayshire,who is visually impaired but usedto compete in the Great NorthRun accompanied by an ablebodied runner.

With most of the donationscoming from his fellow drivers,Gary, who is based at Elgin, hasextended a big thank you to hisgenerous colleagues for theirsupport. Stagecoach Bluebirdalso contributed £25.

Staff at HQ with the filled shoeboxes.

3Winter 2003/04

Students from OxfordBrookes enjoying the

city’s nightlife will nolonger have to worryabout late nighttransport.

Stagecoach in Oxfordshire hassecured a £5 million deal to run anew network of bus routes in Oxford.

The contract, revealed at the 2003Bus and Coach Show, is good newsfor students as the three routes willrun until 3am, providing transportbetween the three main universitysites and to the halls of residencespread about the city.

Students and staff will also benefitfrom cheap transport as they will beable to buy a Unirider pass, whichgives unlimited travel on the threeroutes for just £75 per year.

As part of a unique revenue-sharing agreement put forward byStagecoach, the new routes are alsoopen to the general public, withStagecoach tickets and passesaccepted for travel, thus offering arange of new journey opportunitiesfor local residents.

Ninety-nine-year-old pensionerStanley Randerson has never let thefact that he is blind stop him fromgetting out and about on the buses inHull.

But until now, his favouriteseaside resort of Cleethorpes hasbeen out of reach as his free bus passis not valid south of the RiverHumber.

Now Stagecoach and Hull CityCouncil have stepped in to makeStanley’s day by giving him free travelto the seaside town.

“I often just jump on a bus andwait to discover where it takes me,”he said. “Bus travel enables me to getout and about and the drivers arevery considerate and helpful.

“Having my own special pass toget there is quite a thrill and I am verygrateful. I like to visit Cleethorpes andthe surrounding area and this passmakes that so much easier.”

Stagecoach Hull OperationsManager Tony Fieldsend said: “Wewere happy to help. We want Stanleyto have free travel to wherever hewants.”

Oxford proves it’sgood to network£5m contract benefits university and community

Pass makesStanley’s day

These include direct buses to anout-of-town supermarket as well asenhanced evening and night servicesto the few parts of Oxford that do notalready benefit from Stagecoach’scommercial night network.

This integration with theStagecoach network – and the

benefits that this will bring both thegeneral public and staff and studentsat Brookes University – is cited as oneof the key reasons for the awardingof the five-year contract toStagecoach.

James Freeman, OperationsDirector for Stagecoach Oxford, said

the key to winning the contract wasintegrating two networks – one forthe university and the other forStagecoach in the city – both day andnight.

“The network of bus routes iscentred on the university,” heexplained. “It’s just as if Brookes hasbecome a bus operator.”

Jerry Greatorex, Transport Officerfor the university, said the objectivewas to provide safe, cheap andreliable transport for students as wellas reducing the impact of carcongestion on the environment.

He added: “The new contractgives 18,000 students and nearly3,000 staff access to an extendednetwork of buses which will savethem a lot of money.”

A fleet of nine new buses – amixture of double and single deckers– has entered service on the routes,each sporting the eyecatching new‘Brookes bus’ livery, designed byBest Impressions and BrookesUniversity.

The vehicles also feature the latestLED destination equipment, manufac-tured by Hanover Displays.

James Freeman (left) and Jerry Greatorex announce the new network contract

The eye-catching livery on thenew Brookes bus network.

Thrills but no spills in BlackpoolLiam Jamieson from Ore, near Hastings,beat off strong competition to win thetitle of Stagecoach Bus Driver of theyear.

At the recent national Bus DrivingChampionships in Blackpool, which isopen to all operators, Liam outper-formed his colleagues during a variety oftheory and practical challenges to pickup the trophy and £500 first prize.

One of the driving challengesinvolved completing an obstacle coursewithout spilling a glass of water, placedon board the bus!

Twenty-three-year-old Liam, whopreviously worked in the leisureindustry, has been driving buses forthree years. He joined the HastingsStagecoach depot as a trainee driver.

Only drivers with a one-year accidentfree record can enter the annual BusDriving Championships and Liam waschosen to represent Stagecoach SouthEast after driving in the regional heat atWinchester in the summer.

Last year, Jeff Prince from theHastings depot won the title StagecoachDriver Of The Year and came 27thoverall, with 100 drivers from buscompanies across the UK taking part.Jeff decided not to compete this year butgave Liam advice and tips to help himthrough the tough competition.

Liam, who was this year’s youngestfinalist, achieved 13th place.

Stagecoach Bus Driver of the Year winner LiamJamieson.

Big-hearted bus driver Mike Reid,from St Andrews, Fife, has dedicatedmuch of his spare time over the lasttwo decades to raising tens ofthousands of pounds for goodcauses.

Mike has been a driver for 33years and started out his charitableefforts after he gave up fosteringvulnerable children.

The first charity he turned hisattentions to was Guide Dogs for theBlind, raising £14,000, over a numberof years, to sponsor eight dogs.

Following this success, he hasgone on to focus his attentions on avariety of local initiatives and causes.

During 2003 alone, and oftenwith help from wife Pam, Mike:

•helped organise a Burns Supperfor Guardbridge Bowling Club,raising £350 for a junior pipe band;

•organised a charity match at St Andrews Bowling Club, generating £200 for the local stroke association;

•took members of St Andrews Enable Club (for people with disabilities) on a mystery tour on an open top Stagecoach bus,and raised £600 for Enable at another bowling competition heset up.

But it doesn’t stop there as he hasjust raised £230 for the ill grand-daughter of a passenger whoapproached him asking for help.

Despite his incredible success,Mike remains modest about hisachievements.

He said: “It doesn’t take much tohelp out – it’s just a case of lifting thephone and asking people to help. It’snot all down to my work although Isuppose a lot wouldn’t happen if Ididn’t get the ball rolling. I guess Ijust like helping people.”

Fund-raiserextraordinaire

4 Winter 2003/04

Brave members of Basingstoke-based recruitment company TACEurope became models for the dayduring a recent Bad Hair Day in aidof a local hospice.

The models put themselves atthe mercy of hairdressing andbeauty therapy students fromBasingstoke College of Technologyin the name of charity.

Using a bus, supplied free byStagecoach South East, the studentsvisited Winklebury Junior School,the Hurst Community College and

food distributors 3663, to put thefun into fund-raising and createhilarious hairstyles for pupils andstaff.

Stagecoach Operations ManagerRobbie Hall, who drove the bus forthe day, joined in the fun bywearing a purple wig!

Melanie Blackman, EventManager at St Michael’s Hospice,said: “Thanks to Robbie’s drivingskills we were able to squeeze intosome difficult car parks to providethe hair- raising service.”

Stagecoach Group isdriving forward its green

policy with the publicationof a detailed environmentalstudy.

The 16-page report – the first of itskind for the Group – covers the UK busand rail operations, plus its businesses inNew Zealand and the North East andNorth Central regions of the UnitedStates.

As well as raising awareness of envi-ronmental issues across the Group’smanagement team, Stagecoach has settargets for areas such as vehicleemissions, water and energyconsumption, waste production andrecycling. The Group has made acommitment to measure its performanceyear on year to track improvements.

In the UK, Stagecoach has invested£120 million in the last three years innew state-of-the art bus fleets withreduced emissions, while our £1 billionfleet of new, faster Siemens Desiro trains

will create less noise pollution. Stagecoach is also closely involved in

the research and development of newfuels and fuel additives to improve theenergy efficiency of vehicles.

The company has been drawing onits experience of operating trolley busesand electric buses overseas to trial newvehicles in the UK that will have lessimpact on the local environment.

Brian Souter, Stagecoach GroupChief Executive, said: “We have a keyrole to play in securing the future of ourenvironment.

“Encouraging people to seepublic transport as a viablealternative to the car will helpto reduce pollution levels,alleviate road congestion andimprove the quality of life inour towns and cities.

“Despite the hugeprogress and investment wehave made in the area ofenvironmental sustainability,we realise that this is only astart and we have a long wayto go, but we remaincommitted to building on theprogress we have made sofar.”

The new environmentreport has been sent tosenior managers across theGroup, top investors in thecompany and a variety ofother organisations.

A copy of the report isavailable online atwww.stagecoachgroup.com

Bus users in Aldershot have given thethumbs-up to a new Bus Display InfoSystem (BDIS).

The digital displays, funded byHampshire County Council as part of aQuality Bus Partnership, make it easierfor bus users to know when a bus isexpected at bus stops and messagesregarding delays can be shown bycontrol room staff.

Graham Harmer, OperationsManager at Stagecoach in Aldershot,

said that the BDIS is the first steptowards a more fully automated systemthat will one day give up-to-the-minutereports on bus movements usingsatellite navigation technology.

He said: “The feedback fromcustomers regarding the system is verypositive and is a great step forward inthe way we can provide informationon our services to the public. It makestimetable and route information easierto read and follow.”

Transport reportfuels green drive

Revolutionary fuel additive goes on trial

Hospice given hair-raising support

The bus now arriving at…

The new BDIS displays at Aldershot Bus Station.

‘We have a key roleto play in securingthe future of our

environment’

A new fuel additive, which utilises21st century technology, is beinggiven a trial run by StagecoachGroup.

The new product brings fuelconsumption and environmentalbenefits and could transform theperformance of buses throughout theUK.

The Group has signed anagreement with CeruleanInternational Ltd, the Oxford-basedsubsidiary of the nanomaterialscompany Oxonica Ltd, to trial the

next generation product in up to1,000 vehicles across the country.

Initial trials in Hong Kongdelivered a 10 per cent fuelconsumption reduction. There wasalso a significant cut in carbondeposits.

Stagecoach has started a six-monthtrial of the product and plans to adoptthe next generation technology acrossits 7,000-vehicle UK bus fleet if thecommercial evaluation is successful.

Brian Souter, Stagecoach GroupChief Executive, said: “We believe this

new product has huge potential andwe are delighted to once again beleading the way in the UK busindustry in developing new ideas.

“Stagecoach is committed toplaying its part in building asustainable environment andimproving the environmentalmanagement of its operations. This isyet another example of our drive todevelop transport solutions that willimprove the quality of life in ourtowns and cities.”

Stuart Anderson, Business Director

of Cerulean, said: “We are veryexcited about the potential benefits ofthis product and we are delighted thatStagecoach has decided to evaluatethis product in the UK.”

All new Stagecoach vehicles meettough Euro III emissions standardsand all buses have changed to uselow sulphur fuel.

Trolley buses and electric buseshave also been trialled in thecompany’s New Zealand business aspart of efforts to cut the impact ofoperations on the local environment.

Having a bad hair day? TAC Europe staff pictured with their college stylists.

Driver John Sexton is a genuineknight of the road after rescuinga distraught Luton youngsterwho ended up miles from homeby mistake.

A local hero to the passengerswho were on board at the time,John departed from his timetableto help the boy, who hadclimbed on the wrong bus.

“He’s restored my faith inhuman nature,” said one of thepassengers, Annie Glenister.

The story began as the bustravelled through Streatley whenthe boy, thought to be about 10,became distressed when herealised that he was heading inthe wrong direction.

John explained to passengersthat he couldn’t possibly leavehim in a secluded village milesfrom home. When attempts tocall his parents proved unsuc-cessful, he turned the bus roundand drove back to Luton’sBramingham estate.

Unwilling to just let the boyoff alone, John called a taxi totake him home. In the meantime,the Bedford bus came along andhe flagged it down so that someof his passengers could continuetheir journey. When the taxididn’t appear, he then stopped abus on the route the boy hadmeant to get on originally.

Still not satisfied, the big-hearted driver gave the lad hismobile number and told him toring him when he got home.

Annie Glenister added: “Itwas so exceptional, I was soimpressed by his wholeattitude.”

John (37), who has been abus driver for five years, said:“Anyone with a heart wouldhave done the same thing.You’ve got to look after kids. Iwould never have left him thereon his own.”

Hero behindthe wheel

Caring staff at Stagecoach inCheltenham recently helped acharity raise more than £1,000for its work to give disabled andseriously ill children and adultsan opportunity to enjoy a dayon the water.

Cheltenham District Bus RallyCommittee, backed by driversand the local management team,raised £1,100 for The WillowTrust.

The Trust, founded in 1989,owns two boats moored at SaulJunction on the Gloucester-Sharpness Canal. Each year,around 7,000 people spend aday out, totally free of charge.

A cheque for £1,100 waspresented to Trust AdministratorLiz Rowland by Roy Grey,Cheltenham driver and Bus RallyCommittee Treasurer; DaveThomas, Committee MinutesSecretary; Sarah Allman,Operations Manager inCheltenham and Richard Hall,Operations Manager inSwindon.

Splashing outto aid charity

5Winter 2003/04

Stagecoach South recently provided aspecial bus so that local children couldsing ‘The Wheels on the Bus Go Roundand Round’ on the move!

The children – all aged under four andmembers of Haselmere and Grayshott-based music group, Suzies Songtimes –regularly sing the song, but have to makedo with rows of chairs to imitate a bus.

The group’s founders contactedStagecoach’s Aldershot depot to see if itcould make the tots’ dreams come true.

Brian Pratt, Assistant OperationsManager, who accompanied the specialbus ride around the area, said: “It wasvery impressive. They have obviouslybeen rehearsing and looking forward tothe chance of singing one of theirfavourite songs on the double decker!”

A helpful hand of friendship hasbeen extended to bus users inareas of Coventry.

To help ethnic minorities,Stagecoach has translated 2,000bus leaflets into Urdu andPunjabi.

These have been handed outin the street and distributed toMosques and Sikh temples on therelevant bus routes.

Bill Breen, Stagecoach DepotManager at Nuneaton, said: “Ourresearch shows that not enoughresidents are aware they can usetheir passes on Stagecoach busesand that we give change on fares.

“We know from this researchthat a lot of these potentialpassengers are standing backwhen a Stagecoach bus arrives atthe stop because they areuncertain whether they areentitled to travel withStagecoach.

“What we are seeking to dothrough this new initiative isassure ethnic minorities that theyare most welcome.”

Caring Stagecoach staff recentlyraised hundreds of pounds forpioneering research into geneticdisorders.

Staff at Group headquarters inPerth and at the Shared ServiceCentre in Stockport hung up theirsuits on Jeans for Genes Day andpaid for the privilege of wearingdenims to work to raise money fora good cause.

In the UK, one baby in 33 isborn with a genetic disorder orbirth defect, and the cash raised aspart of Jeans for Genes Day helpsprovide advice and support forthose affected and their families.

Stagecoach matched the £250raised on the day, bringing thetotal donated to £500.

Jeans for Genes, whose patronis pop star Robbie Williams, hasraised more than £15 million sinceits launch.

The money raised is used tofund eight specialist charities,which invest in research athospitals and other centresthroughout the UK.

Singing tots go bumpety-bump

All aboardin Coventry

Donning denimhelps research

Mums and toddlers join together in song.

Stagecoach East Kent driver PaulHouselander took the plunge inNovember when he tied the knot withhis long-term partner Nicola.

However, Nicola is not the only lovein Paul’s life, for he is often seen out andabout behind the wheel of East Kent’spride and joy – a preserved 1968 vintageAEC Regent!

The vintage double decker – registra-tion number MFN 946F – is regularlyused at special events around the localarea and is especially popular withschoolchildren.

•Paul is pictured with Nicola andtheir son Josh, alongside the Regentwhich was a special guest at the bigevent!

Decked out for a wedding!

Congratulations go to Elite Clubwinner Sandra Bell who waspresented with a cash prize anda bottle of wine by PortsmouthOperations Manager DavidRossiter.

Sandra, who works at theNational Express Havant TravelShop (attached to thePortsmouth depot), came first ina recent monthly league table forthe top 100 agents and had thebest ratio for sales of travelinsurance.

Sandra joinssales elite

Me g a b u s . c o m ,Stagecoach’s ground-

breaking internet-basedinter-city bus service, isproving to be a megasuccess.

More than 100,000 passengershave jumped on board the newservice to take advantage of thebargain £1 travel offer – and thenumbers are growing as new routesare launched across the country.

Customers can now travel fromManchester to Liverpool and Leedsfollowing the stunning success ofthe product on a number of trialroutes in Scotland and betweenOxford and London.

Stagecoach has developedmegabus.com by adapting the low-cost, no-frills approach of thebudget airlines.

The web-based ticketless serviceprovides passengers with cheaptravel on 94-seat double-deckervehicles.

At least 40% of the seats are £1.Seats are yield-managed in thesame way as the budget airlines,with slightly higher fares for last-minute bookings or popularjourneys.

Passenger numbers in Scotlandare growing at a rate of 6% a week

Megabus serviceproves a mega-hit

and the popular megabus.comwebsite has now had well over200,000 hits.

Customer research has shownextremely high levels of satisfactionwith the new service and up to athird of passengers are former car

users. The service is also appealingto what marketing experts call “silversurfers”, over 55s who use theinternet.

In Oxford, megabus.com hasbeen hugely popular with universityand schools groups – and even

overseas visitors have got the bug.Recently, a party of 40 children froma village in Spain, who were in theUK comparing rural life in their owncommunity with that in London,opted to take megabus.com for a dayvisit to Oxford.

Megabus – rolling out to acclaim across the country.

A tale to tell?

If you have been up to somethingunusual to aid your local communitythen we’d like to hear about it. YourOn Stage contact is listed on p2.

6 Winter 2003/04

New Desiro tTransport Secretary launches £1billion flee

Desiro Class 450 FactfileBuilt from 2002, by Siemens at Krefeld, near Dusseldorf,Germany and Vienna, Austria. The power cars are built inGermany and the trailer cars in Vienna

Number of units • 110

Number of seats • 240 Standard Classper four-car (total) • 24 First Class

Total fleet • 440 units with 29,040 seats

Max speed • 100mph

Overall length • 81.6m

Compatibility • Can run in multiples with Class 444 and Class 450 only

Maintenance depot • Northam Depot, Radcliffe Road, Northam, Southampton

Lease owner • Angel Trains

Routes operated • Suburban

Toilet facilities • Two toilets per four-car train, including one accessible for passengers in wheelchairs

Passenger benefits • Audio and visual Passenger Information System

• On-train CCTV• High profile Guard’s Office• Overhead luggage racks• Air conditioning• Airline style seats, which are

slimmer to maximise legroom• Bright new internal colour

scheme with multi-purpose aresuitable for two bicycles

• Improved safety and crash worthiness

• Modern centrally controlled sliding doors

First Class features • Power sockets and reading lighin First Class

• Luxury reclining seats with armrests

• CurtainsPassengers waiting to board the first Desiro atBournemouth station

The Operations Training Centre inBasingstoke has 11 purpose-builtclassrooms and a dedicatedsimulator wing that houses fourstate-of-the-art driving simulators,which are fully-functional cabreplicas of the new Desiro train.

Simulators allow drivers toexperience a range of severeweather conditions, includingsnow and ice, and can alsoreplicate conditions duringsignalling failures, loss of brakesystems and on-board passengeralarm calls.

The simulator’s advanced com-munications system allows jointsafety exercises with Network Railsignallers.

They play a vital role intraining drivers to operate the newtrains. As well as being used totrain existing drivers, they will beintegrated into basic training fornew drivers and used as part ofongoing refresher sessions.

A total of £1.1 million has beeninvested in the four simulators,which is included within theoverall £1.5 million cost ofdeveloping the new OperationsTraining Centre.

Krauss-Maffei Wegmann, asubsidiary of the Desiro trainbuilders, Siemens, constructed thesimulators using real trainequipment and modified software.They will be maintained bySiemens staff from Northam Depotnear Southampton as part of thetrain maintenance contract.

TrainingcentrestretchesSWT staff

Before entering passenger service,the Desiro trains were rigorouslytested.

They were issued with their ‘Icertificate’, which allows them tocarry passengers, on October 1after receiving approval from theRolling Stock Acceptance Board.

This followed a period ofempty running carried out in theBournemouth area after the trainswere issued with a ‘non-passengerI certificate’ at the end of August.

As a final stage in the testing,the trains travelled withoutpassengers between stations fromBournemouth to Dorchester Southfor two weeks to fully test the on-board systems under real-lifeconditions.

The trains also completed 1,000kilometres of fault-free running onthe Siemens’ test track in Germanybefore delivery.

The next stage of the introduc-tion of the Desiro fleet is a trainingprogramme for platform staff andtrain crew, which is currently beingheld at Woking, and the responseso far from the on-train teams hasbeen extremely positive.

Testing,testing…and testedagain

7Winter 2003/04

Secretary of State forTransport Alistair

Darling MP has officiallylaunched South WestTrains’ new state-of-the-art Desiro fleet.

Mr Darling praised the benefits ofthe new trains, which willeventually replace the ageing slam-door stock, at a ceremony atWaterloo Station in London.

He also unveiled a Desironameplate before accompanyingSouth West Trains ManagingDirector Andrew Haines on one ofthe new trains to the company’sOperations Training Centre inBasingstoke.

The £1 billion Desiro project willsee a fleet of hi-tech Siemens trainsintroduced on the SWT network,bringing a step-change in customerservice.

Benefits of the new fleet include:

• Improved comfort and safety• On-train CCTV• Passenger information systems• Air conditioning• Better disabled facilities

The first of the new trainsentered passenger service onOctober 5, picking passengers up

rains on tracket

from Bournemouth station andtravelling down to Weymouth.

Andrew Haines said the firstpassenger journey, which featuredan eight-car train, was “animportant milestone”.

“A lot of work went on behindthe scenes to reach this point andmuch will continue to ensure thatthe introduction of the remainder ofthe fleet goes as smoothly aspossible,” he said. “There will be

many more bridges to cross as thisprocess continues.”

He also stressed the need tobuild on the progress made over thepast 12 months in driving upperformance on the SWT network.

ea

hts

Transport Secretary Alistair Darling (left), with Andrew Haines, after unveiling the Desiro nameplate.

Desiro on the platform at waterloo.

The new £25 million trainmaintenance depot atNortham, Southampton,which will house theDesiros, was unveiled bySouth West Trains andSiemens over the summerand launched byStagecoach Chief ExecutiveBrian Souter.

Managed by Siemens,which has signed a contractto maintain the Desiros for20 years, the hi-tech depotincludes a four-roadmaintenance shed and anadministration block withaccommodation for SouthWest Trains’ drivers.

In addition, there willeventually be a total of 150Siemens’ maintenance staffworking at the depot.

The company has agreedto a series of stringentperformance targets toensure it provides high-quality, reliablemaintenance for South WestTrains.

Northam also has a newpit-stop approach thatenables major componentsto be replaced quickly andeasily so the train is out ofservice for the minimumamount of time.

There is also a drop-pitallowing bogeys and otherunder carriage equipmentto be replaced quickly. Theaverage time to change abogey has been reducedfrom seven hours to 90minutes.

An on-site wheel lathe,the latest hi-tech carriageplant wash and anelectronic train-taggingsystem are also features ofthe new depot.

Northamdepotsharpensservice

South West Trains’ £1 billionorder for the new SiemensDesiros is Britain’s biggesttrain order.

Some 110 four-car Class450 Desiro trains and 45five-car Class 444s areincluded in the new fleet.

The new trains willreplace the slam-door stockand bring South West Trains’fleet up to date.

Around 30 Class 450 unitsare expected to be in serviceby February 2004.

Biggesttrainorderin UK

8 Winter 2003/04

Stagecoach East’s Crimebuster Bushas been donated to Thanet Police.

Since 1994, the Crime ReductionUnit of Thanet Police has used thedistinctive bus to tour its mobileexhibition.

Stagecoach East Kent’sEngineering Manager GrahamePatterson, handed over the documen-tation for the 1976 Bristol VRT/SL3 toInspector Dave Barnett from theCrime Reduction Unit during anofficial ceremony at Thanet Depot,where the bus will continue to bekept and maintained.

Inspector Barnett said there wereplans to modernise the interior of the

It’s the crimebus-ter!

It’s all yours! Grahame (left) presents the documentation to a delighted Inspector Barnett.

Crimebuster Bus to help driveforward the importance of preventingand reducing crime in the region.

He added: “We are delighted withthe donation and the ongoing supportoffered by Grahame and his team atStagecoach. The displays on the buswill now be updated and our crimereduction team will increase its use.”

South West Trains’ human resourcesteam has won a top accolade at anational awards ceremony.

Beverley Shears, HR director,collected the HR Director of the YearAward at the Personnel TodayAwards 2003 held in London.

Beverley said: “I am delightedthat the hard work of the entireSouth West Trains’ team has beenrecognised in this way – I am veryproud of them.”

Managing Director AndrewHaines added: “Bev has done a hugeamount to transform HR since shejoined the company and the awardwas very well deserved.

“It is also, of course, a reallyfantastic reflection on the whole ofher team. Indeed the judges said thatthey were ‘struck by the sheertenacity of Shears and her team indriving through change to put SouthWest Trains’ employees centrestage.”

Beverley’s efforts were alsorecognised with a special commen-dation in the Overall Winnercategory.

South West Trains was alsohighly commended at the IntegratedTransport Awards alongside partnersHampshire County Council for theirimprovements to Winchester stationforecourt.

Team scoopsUK award

Stagecoach is supporting a drive toimprove fire safety in Perth byproviding free bus travel to the city’stwo fire safety officers.

Tayside Fire Brigade’s RoddyMcInnes and Scott Macdonald areresponsible for ensuring businessesand industrial premises in Scotland’s‘Fair City’ are safe and comply withthe legislation.

As well as offering advice tobusinesses, Roddy and Scott workclosely with bodies such as licensingboards and social services to checkpremises under their control haveadequate fire precautions in place.

Now, thanks to generoussponsorship from Stagecoach, thetwo officers will enjoy a year’s freebus travel on the company’s Perthbuses.

Robert Robinson, OperationsManager for Stagecoach in Perth,said: “Fire safety is an issue thataffects us all, from major employerssuch as Stagecoach to individuals intheir own home.

“We hope our support will helpthe crucial work of Tayside FireBrigade in getting that messageacross and ensuring the city’shundreds of business premises aresafe.”

Roddy McInnes added: “TaysideFire Brigade is delighted to continuethe partnership with Stagecoach,which has shown great communityspirit in offering this service to assistfire safety officers based in Perth.

“This will not only bringeconomic savings to the Brigade, butwill also reduce pollution to theenvironment by officers not usingtheir own transport.”

Fair Citydousesfire fares

It’s a snip: (from left) Andrew Dyer, Mark Oaten, MP for the Winchester District, Cllr Keith Estlin(Executive Member for Environment) and Cllr John Beveridge (Portfolio Holder for Transport and Access).

A tale to tell?

If you have been up to somethingunusual to aid your local communitythen we’d like to hear about it. YourOn Stage contact is listed on p2.

Stagecoach continues to heavilyinvest in making the bus the firstchoice for communities across thecountry.

A £1.1m investment to provideeasy access buses for Winchesterwas celebrated recently at the newstance at the town rail station.

Local MP Mark Oaten cut theribbon, as the new route waslaunched as part of a low floorbus investment for the area.

Stagecoach is working inconjunction with HampshireCounty Council and WinchesterCity Council to improve bus travelin the city. Bus users inWinchester will benefit fromQuality Bus Partnership schemeson key routes.

The Stagecoach investmentfunded the introduction of 13brand new easy access buses tosupport recent route improve-ments.

The front of these new lowfloor buses raise and lower so thedriver can get closer to the kerbheight. The local authorities haveplans to raise more kerbs inWinchester to make this eveneasier in the future.

Andrew Dyer, ManagingDirector for Stagecoach South,said the changes to the frequency

on the route were part of aprogramme to enhance servicesafter detailed analysis ofpassenger trends.

And in Ayrshire a £2.75 millioninvestment has brought 21 state-of-the-art buses to a popularservice. Again low-floor doubledeck vehicles have beenintroduced, coinciding with a localinitiative to introduce highstepping kerbs, which will make iteven easier for passengers.

But improved access isn’t theonly benefit as Stagecoach, havingworked closely with the police,has installed CCTV on each bus toincrease safety for passengers andto deter crime.

The vehicles are also eco-friendly and meet Euro IIIemissions levels, helping toreduce pollution.

The local MP, Brian Donohoe,said: “The new low-floor designwill ensure easier and moreenjoyable journeys. It is also aparticularly welcome developmentas each of these buses will beunder the control of CCTVcameras, ensuring safer travellingfor our bus passengers and thedrivers.

“This is really exciting news forour constituency.”

Better routes, betteraccess…better service

And Chief Executive BrianSouter helped launch StagecoachAuckland’s new mobile centre thatwill benefit staff across thebusiness area.

A refurbished MAN SL200 bushas been converted into a high-tech classroom, giving Auckland’sseven depots access to the OpenLearning facilities on a timetabledrota.

The refurbished and re-decorated vehicle has had some ofits windows replaced with panels,air conditioning has been installedand there are spacious work andstudy benches lining the sides.

Add to that pinboards, storagespace and even cutaway

computers to show how they workand you really do have a 21stcentury classroom on the move.

Equipped with cableconnections, the mobile centre,with its eye-catching branding,simply rolls into a depot and plugsin.

Staff are able to visit in theirown time and there is a range ofcourses available, from basickeyboard skills to understandingWindows, as well as online oppor-tunities to develop further skills.

The Auckland initiativecomplements the Open Learningcentre at Stagecoach Wellington’sKilbirnie Depot, which has beenopen since 1999.

NZ learning centrehits the open road

Brian Souter logging on with Stagecoach NZ IT Administrator Mark Gibbison.

Open Learning has hit the open road inNew Zealand.

9Winter 2003/04

An ambitious campaign tochange people’s views of

public transport has beencarried out in Hartlepool inthe North East.

Following hot on the heels of thePerth and Grimsby telesalescampaigns, the overall aim was toencourage more people to use publictransport.

With its public transport-friendlypopulation, Hartlepool wasconsidered the perfect location for theinitiative.

Research undertaken in August2002 in Hartlepool established that70% of existing customers weresatisfied or very satisfied with theoverall service and 81% were satisfiedwith the attitudes of bus drivers.

Head office staff and depotmanagement staff formed a teamunder the theme ‘Time for a Change’– which arose from the discovery thatthe Big Ben bell was cast in Stockton,giving the project a local slant.

‘Time for a Change’ also refers tothe campaign’s main aim – to attractnew customers and encourage themto change their travel habits.

Ten refurbished vehicles – deckedout in specially-designed livery –toured the area during the campaignand an independent telesales agencywas commissioned to target

Hartlepool takesthe bus to heart

A milestone in the Virgin Trainscoach link between Milton Keynesand Luton Airport was celebratedrecently as the route clocked up its250,000th passenger.

Owned and operated byStagecoach East from its Bedforddepot on behalf of Virgin Trains,the rail link provides an hourly

Coach link zooms past major milestoneservice for rail passengers travellingto Luton Airport.

The service is also available tolocal residents making journeysalong the route.

The lucky 250,000th passenger,Abi Adebayo, was presented withtwo pairs of first class rail tickets bythe Mayor of Milton Keynes,Councillor John Monk, and VirginTrains Product Manager Mark Searsduring a ceremony at Milton KeynesRailway station.

The first of four upgraded

coaches, painted in the latest VirginTrains livery, was also unveiledduring the ceremony.

Virgin Trains Chief ExecutiveChris Green said: “Since its intro-duction in 1999, we have carried250,000 passengers on the MiltonKeynes-Luton Airport Rail Linkcoach and have seen 20% growthover the last year.

“The distinctive livery makes thecoach look just like one of our newtrains and really does emphasise theintegrated transport facility.”

Abi receives her prize from the Mayor whileVirgin’s Mark Sears looks on.

Malcolm Day just flatly rejects callingit a day after 41 years on the buses.

Having had two replacementhips, the Nuneaton-based drivervows to stay behind the wheel foranother couple of years until heturns 65.

And Stagecoach South Midlandsis delighted this loyal employee justkeeps proving that he is strongenough for more.

“I just love driving, which is whyI have no thoughts about retirement– even after 41 years,” said Malcolm.

“You have to keep going as longas you can and I have no end offriends on the buses.”

Going strongafter 41 years

Bill pocketstop prize again

Great result –but not Boro’sThe North East is always buzzingwhen Middlesbrough meetNewcastle in the Premiership.

But not everyone can make thederby clash – especially if they’reStagecoach staff keeping the wheelsof business turning.

But Stockton Depot ManagerGeorge Mutch came up with an ideawhich would allow the Boro fans toshow their support and raise moneyfor a worthy cause in the process.

On big game day, fans wereallowed to don their team’s coloursfor the princely sum of £2.

The cash rolled in and, thanks toa top-up from the company, thehandsome total of £250 was raisedfor Cancer Research.

However, charity was the onlywinner on Teesside – Newcastlepicked up all the points on the pitchwith a 1-0 win.

Bill Breen just keeps on pocketingthe same prize.

The Manager of StagecoachSouth Midlands Nuneaton depot haswon the Bernard Ellis Memorial PoolTrophy a record five times since thetournament began in 1984.

After beating four-time winnerBob Edwards in the final, Bill said:“I’ll be back next year. Myopponents have plenty of time topractise and see if they can take thattrophy off my mantelpiece – eventhe missus likes it there.”

local households.Seven thousand people in the

town were offered a week’s freetravel as part of the telemarketingcampaign in a bid to convince morepeople to travel on public transport.

As an incentive, customers whoredeemed their vouchers were auto-matically entered into a prize draw fora £250 watch.

More than 1,600 vouchers were

Definitely a time for change as passengers Nora Woodward and Joseph Winship receive their prize watches from Hartlepool staff.

The Driving StandardsAgency (DSA) has awardedtop marks to twoStagecoach drivers fromChichester.

Malcolm Brown, who hasbeen driving since 1987,and Steve Barker, who hasnearly 20 years’ drivingexperience, have bothgained a rare Grade 1assessment by the DSA.

The Agency sendsqualified inspectors, posingas members of the public, toride on buses in the regionto assess drivers’ skills.

Stagecoach’s Chichester

Operations Manager BobJackson explained: “Theundercover assessmentrequires more than justdriving skills. It covers allaspects of what is a difficultjob, including passengercare, courtesy and safety,using a 23 point score sheet.Malcolm and Steve scoredwell above average, as mostdrivers are awarded a Grade2 or 3.”

Steve (left) and Malcolm (right)receive their Grade 1 DSA certifi-cates from Bob Jackson.

Drivers join country’s elite

issued to people who do not normallyuse buses and 16% of these wereredeemed.

Paul de Santis, CommercialManager Teesside, said: “Thiscampaign has been a great success inmany ways. It has highlighted thebenefits of bus travel in Hartlepool toa substantial number of new users,while the improvement to the fleetand staff commitment to the project

will ensure that new and existingusers see a step change in the qualityof service we provide.”

A tale to tell?

Do you have any initiatives that areattracting more people to try thebus, then let us know. Your OnStage contact is listed on p2.

10 Winter 2003/04

Three brothers are hoping the artisticflair of their father who died from bowelcancer will help raise money to fight thedisease.

Christopher Spittal, who worked inthe bus industry in Scotland for 30 years,passed away in January last year aged67.

He started his working life as anapprentice mechanic with W. Alexanderin Kirkcaldy in the 1950s and laterbecame a development engineer with acompany making fuel pumps.

Christopher then joined Fife Scottishand worked in Cowdenbeath andGlenrothes before he was forced toretire early due to ill-health.

During his retirement, Christopherspent many hours painting and, after hedied, his sons John, Dave and Andrewfound a collection of around 25 oilpaintings, many of them landscapes.

“Most of them were unsignedbecause he didn’t think they werefinished, but they were complete inevery detail,” said Dave. “Our favouriteis one of the Forth Bridge.”

Now Dave and John, who live in

The Children in Need campaign ishundreds of pounds better off thanksto the fund-raising efforts ofStagecoach staff across the country.

Staff at the Perth headquartersraised just over £250 through a rangeof sponsored activities, raffles andhome baking – and the sum wasmatched by Stagecoach Group.

A seven-a-side football match

UK effort boosts Children in Need

Busman’s art helps cancer fight

between staff and St Johnstone FC’syouth team also boosted the moneygoing to good causes.

Stagecoach, which sponsors theyouth team, lost 16-2 in a similar match

last year. This year, the match ended 8-4 to the Saints’ youngsters but charitywas the real winner with every goalgenerating more money.

Meanwhile, an amazing £1,000 is

on its way to Children in Needfollowing a bus pull organised by staffin Carlisle.

Drivers Richard Mole and LeeFoster, plus Linda Hutchinson,

Treasurer of the Stagecoach Sports andSocial Club in Carlisle, were behindthe idea.

Richard and Lee each pulled adouble-decker bus aroundWillowholme garage and, combinedwith a charity disco at night, managedto raise £721. Stagecoach in Carlisletopped the sum up to ensure a grandis on its way to the good cause.

Glenrothes, and Andrew who lives inAuckland, New Zealand, have decidedto offer prints of the paintings for saleto help raise money for the BobbyMoore Fund.

The brothers also have plans to usea collection of their father’s paintingsin a 2005 calendar, with all profits alsogoing to the fund.

Prints of the paintings can beordered online at www.cspittal.com.

The Bobby Moore Fund was set upby Cancer Research UK in memory ofthe England football legend and WorldCup winner who died from bowelcancer in 1993. Since then, the charityhas raised over £2.5 million forresearch.

Another crop of tomorrow’smanagers for Stagecoach UK Busare on the way thanks to the StaffDevelopment Programme.

Currently in its sixth year, theprogramme combines company-based training with off-the-jobcourses to develop skills andwiden participants’ experience.

Following the application andnomination process, AlisonSpooner, Training andDevelopment Manager in Perth,has now launched the next 10participants on SDP6.

This will run until June 2004and then it will be time toadvertise for SDP7!

Each participant has a mentorthat supports them through thisprogramme and reviews theirprogress. There are noguarantees, however – partici-pants must show what they cando and that they are ready to bepromoted at the end of theprogramme.

Alison Spooner summed it up:“If you’ve got what it takes – thisprogramme is a great opportunityto progress in Stagecoach UKBus”.

Developingtomorrow’smanagers

‘Fuel Your Potential’ poster – your company needs you.

The ForthBridge printwhich is nowon sale tobenefit theBobby MooreFund.

Highlights•Strong half-year with UK Bus, Rail, Coach USAand New Zealand operating profits all up onthe same period last year

•Substantial growth in London bus businesswith revenue up 19.8%

•Passenger numbers at UK Bus up 1.3% outsideLondon

•Innovative growth ideas introduced in UK busoperations

•New South West Trains and Island Linefranchises agreed

•South West Trains passenger volumes up 3.1% •Coach USA restructuring largely completed•Continued revenue and passenger growth inNew Zealand

•Disposal of Citybus

Financial Highlights•Turnover £963.8m (2002 - £1,067.7m) •Total operating profit* £76.9m (2002 - £86.9m) -£75.9m (2002 - £74.3m), excluding disposedCitybus business

•Profit before tax £44.8m (2002 – loss of£524.1m)

•Profit before tax* £60.3m (2002 - £75.2m**) •Earnings per share* 3.2p, down from 4.4p•Free cash flow £100.3m (2002 - £100.2m) •Net debt down 62.3% from £560.0m to£210.9m

•Interim dividend up 12.5% to 0.9p (2002 - 0.8p)

*excluding goodwill amortisation andexceptional items

**prior year included £15.0m of non-recurringgains on repurchase of bonds and £7.2m non-recurring liquidated damages at South WestTrains

We are delighted to report thatStagecoach Group has made a

strong start to the financial yearending 30 April 2004, with goodprospects for further growth andincreased shareholder value inour core UK and overseasoperations.

We have made significant strides, particularlyin the last six months, and the Group is nowfirmly back on track. That dramatic transforma-tion has been no accident – it has been the resultof a clear strategy and the commitment of ourmanagement teams to deliver what wepromised.

Twelve months ago, we had yet to start thehuge challenge of restructuring our NorthAmerican operations. That programme has nowlargely been completed – well within ourpromised schedule. We now have a core ofbusinesses – centred on the North East and NorthCentral regions of the United States, and Canada– that can deliver good value moving forward.

Last December, we were still involved in thecomplex negotiations regarding a new franchiseat South West Trains. Again, we have deliveredand secured a deal that should bring strong andpredictable returns.

Across the Group, we now have a solidplatform for the future. We have a strong balancesheet and have achieved a substantial reductionin Group debt, down from £560.0m as at 30 April2003 to £210.9m as at 31 October 2003, whichwill bring long-term benefits to the business.

We have been extremely encouraged by thereturn of the dynamism that was the mark ofStagecoach in its early days. As you can see fromthe results for the six months to 31 October 2003,we have a strong portfolio of cash-generative

businesses and good potential for furthergrowth.

Passenger numbers and revenue are drivingahead at South West Trains where we arecontinuing to focus on improved performanceand customer service. We are also in the processof delivering Britain’s biggest order for newtrains with the introduction into passengerservice of the first of our £1 billion order forstate-of-the-art Desiro trains.

Stagecoach is leading the way in the UK busindustry with new ideas and new products.

We have launched two UK firsts in the pastsix months – Megabus.com, the country’s firstInternet-only inter-city bus service, and YellowTaxibus, an innovative demand responsiveservice.

While they are at an early stage, we believethat both have potential for the future. Ourinvestment in research and development is

Interim results for the six months ended 31 October 2003

Robert Speirs Brian SouterChairman Chief ExecutiveStagecoach Group Stagecoach Group

driving growth in our provincial bus networks,while revenues in London are 19.8% ahead ofthe same time last year.

Both the Department for Transport and theScottish Executive are taking forward our KickStart proposal for targeted funding to supportthe introduction of new services and reinvigo-rate the UK bus network.

Passengers will benefit further fromStagecoach’s continued investment in new busesin the UK during this financial year.

In New Zealand, where we are the marketleader in bus services in the metropolitan areasof Auckland and Wellington, we have deliveredpassenger volume growth of 5.5% over the pastsix months, continuing a consistent trendstretching back more than a decade.

We are also pleased to report that we havejust published our updated EnvironmentalPolicy statement. This document outlines ourcommitment to good environmentalstewardship and we have set ourselves somestretching targets.

As you may know, we are currently carryingout a commercial evaluation of a nextgeneration fuel additive product that has hugepotential in terms of reduced fuel consumptionand improved environmental performance. Weare also using environmentally friendly hybridelectric buses overseas. Details of these andother initiatives are included in the full environ-mental policy document, available on ourwebsite at www.stagecoachgroup.com.

The loyalty of our shareholders andemployees has been an important factor under-pinning our progress in the past year.

We hope you will share our renewedconfidence in the prospects for the Group andwe look forward to ensuring you share in thefuture success of Stagecoach.

Stagecoach back on track

11Winter 2003/04

Little did Derek Deverson realisewhen he joined the then East KentBus Co in 1958 as a Wages Clerkthat it would be an incredible 45years he would spend in the busbusiness.

Having now retired as aController with Stagecoach, Derek,from Ramsgate, chose watches, aspecial rechargeable torch and astate-of-the-art metal detector asretirement presents.

And he was thanked for the parthe played in helping to transportmore than 450,000 passengers amonth on the region’s fleet of buses.

Sixty-two-year-old Derek doesnot plan to be idle. As well as freshwater fishing, he enjoys collectingcrime and mystery books, stampsand currencies of the world andintends to use the new metaldetector to collect a few lost coins!

A total of 752 years’ service wascelebrated recently by staff fromStagecoach West Scotland.

Long service awards and retiralgifts were presented during aspecial dinner at the Park Hotel,Kilmarnock.

Tom Wileman, ManagingDirector, Stagecoach Scotland, said:“Every year is a special occasionmarking the hard work andcommitment of these remarkablepeople who have dedicated theirworking lives to the bus industry.”

Those honoured were: WilliamJardine (35yrs), William Stitt (40yrs),Walter Hunter (25yrs), WilliamJohnstone (40yrs), Hugh Sloan

Stagecoach North West recentlyhonoured nine of its long servingemployees and retirees at a specialdinner at the North Lakes Hotel,Penrith.

Stagecoach UK Bus DivisionManaging Director, Les Warneford,attended the event and paid tribute tothe staff, who had clocked up a total of287 years between them.

Pictured, from left, are: Nigel Barrett,Managing Director, Stagecoach NorthWest; Neil Dobson, Morecambe driver,25 yrs; Kenneth Dixon, former Kendaldriver, 32 yrs (retiree); Geoffrey John,

West Cumbria driver, 35 yrs; GeorgeCutler, Preston driver, 25 yrs; LucyCarswell, former Carlisle secretary, 38yrs (retiree); Ike Graham, formerPenrith leading driver, 49 yrs (retiree);Philip Dunn, Carlisle driver, 25 yrs;John Ireland, former Preston driver, 33yrs (retiree); George Benzie, formerBarrow driver, 25 yrs, and LesWarneford.

Derek detects a little morespare time

Three members of StagecoachEast’s Thanet depot have becomethe first in the company to gaintheir NVQs in engineering.

Christopher Harman, NigelHarling and Clive Dyer took justover a year to pass practical teststo gain their certificates for NVQ

Level 3 Maintaining AutomativeVehicles for Body, Structure andCladding and Mechanical.

Engineering Manager GrahamePatterson said: “Stagecoach inEast Kent is delighted for them.They are part of a dedicated teamof 28 staff which keeps the fleet

of 59 buses running in the Thanetregion. We hope that others willfollow and try for the NVQaccreditation.”

A first for Stagecoach: Pictured, fromleft, with their NVQ certificates areChristopher, Nigel and Clive.

Thanet trio notches up a first

Honours across the UK

Back row, from left: Alistair Hay(Stonehaven, 25 yrs), AlistairStrachan (Peterhead, 25 yrs),Raymond Dziennik (Cowdenbeath,25 yrs) , James Duncan (Glenrothes,30 yrs), Henry Duffy (Aberhill,25yrs), Robert Watson(Cowdenbeath, 25 yrs), Ian Doig(Kirkcaldy Head Office, 25 years),Robert Low (Aberhill, 25yrs), HenryPirie (Peterhead, 25 yrs), BrianDuncan (Macduff, 25 yrs), Andrew

Stagecoach Operations Director for EastKent, Neil Instrall, thanks Derek at theThanet Depot.

Banbury has had its very first latenight buses.

An initiative involvingStagecoach South Midlands, thepolice and the local authority sawbuses running from the town centreto outlying areas up to 3.30am onFridays and Saturdays in the build-up to Christmas.

Late night revellers were able tobuy their tickets from behind the barin a number of nightspots.

Club service

STAGECOACHNorth West

STAGECOACHWest Scotland

(35yrs), Paul Mitchell (30yrs), JackRonald (30yrs), Robert Kennedy(25yrs), Frances Reid (25yrs), JohnBorland (Retiral), Graham McTurk(Retiral), Adolf Tullius (25yrs),Andrew Kirkpatrick (25yrs), IanThomson (25yrs), Ronald Fisher

(30yrs), Eric Johnstone (30yrs) andCharles Paterson (25yrs).

Also pictured are BryonyChamberlain (Operations Director),Tom Wileman (Managing Director)and Robert Andrew (DeputyManaging Director).

Stagecoach East Scotland recentlyheld its long service awards.

Management held a dinner inKirkcaldy and staff from all over EastScotland attended.

On the night, 36 members of staffreceived awards and, between them,they had a total of 1,081 yearsservice to the company.

Robert Andrew, DeputyManaging Director for StagecoachScotland, said: “It is extremely rare

to find staff with service to anycompany ranging from 25 to 44years. Stagecoach is very fortunateand is delighted to have suchdedicated and committed staff.”

Staff pictured receiving theirawards are:

STAGECOACHEast Scotland

STAGECOACHManchester

The large number of employees whohave achieved their long servicestatus in 2003 prompted StagecoachManchester to hold two awardceremonies.

In total, over 900 years ofexperience has been achieved by just32 people representing all StagecoachManchester depots and a variety ofjob roles.

The first ceremony took place inApril followed by another one inOctober 2003.

Commenting on the achievementsMark Threapleton, ManagingDirector, said: “It’s an honour to be ina position to reward such loyalemployees as those who attain theirlong service awards.”

Proudfoot (Glenrothes, 25 years),James Gibson (Elgin, 30 yrs)

Middle row – Tom Wileman(Managing Director), Presslie Steele(Aberdeen, 25 yrs), John McVicar(Kirkcaldy, 25 yrs), William Gowans(Aberhill, 25 yrs), Charles Pullar(Aberhill 25 yrs), Dennis Matthew(Elgin, 30 yrs), Ethel Provan(Kirkcaldy, 44 yrs – retiral), RobertMcLeman (Buchan, 30 yrs), RobertBarron (Macduff, 35 yrs), IanVlemmiks (Aberhill, 28 yrs – retiral),Jim Stewart (Elgin, 25 yrs), LesMassie (Aberdeen, 25 yrs), DavidCumming (Elgin, 25 yrs), RobertAndrew (Deputy ManagingDirector).

Front row – Alexander Cumming(Macduff, 40 yrs), Bob Blyth(Kirkcaldy Head Office, 35 yrs), BillRenton (Aberhill, 35 yrs), ArchieLowe (Cowdenbeath, 35 yrs),JockMeldrum (Kirkcaldy Head Office, 42yrs – retiral), Sandy Forbes(Aberdeen, 42 yrs – retiral), JohnGibson (Aberdeen, 30 yrs – retiral),James Swan (Cowdenbeath, 35 yrs),Henry Bell (Aberhill, 35 yrs),William Nardone (Cowdenbeath, 35yrs), Alistair Beech (Dunfermline, 30yrs), Ena Lamb (Fraserburgh, 35 yrs).

12 Winter 2003/04

Stagecoach drove off witha clutch of awards at this

year’s UK bus industry‘Oscars’.

The company was involved in twowinning projects, one runner-upinitiative and was highly-commended ina further three categories in the annualBus Industry Awards.

Secretary of State for TransportAlistair Darling MP, who presented akeynote speech to 600 bus industryguests, praised Stagecoach’smegabus.com project as an excellentexample of innovation.

Stagecoach Manchester won theEureka! Award for its ground-breakingUnirider summer on-line ticket.

It is the second year in a row thatStagecoach Manchester has taken theaward and the third success in five yearsin one of the marketing categories.

Stagecoach targeted students stayingon in the city over the summer with ane-marketing campaign.

A new summer holiday ticketoffering unlimited travel on Stagecoachservices during July and August wasmarketed at 800 students via-email.Some 500 students took up the ticket injust three weeks, with the first salerecorded only eight minutes after the e-mail went out.

Hampshire County Council won theBus in the Countryside Award for theCango demand responsive service,which is operated in partnership withStagecoach. It was also highlycommended in the Claudia FlandersMemorial Award for Accessibility.

Cango, operated by Stagecoach

Prize guys once again!Stagecoach records another soaraway success at bus industry ‘Oscars’

‘Stagecoachcontinues to lead theway when it comes

to innovativeapproaches tomarketing bus

services’

Les Warneford,Managing Director,Stagecoach UK Bus

The highly-successful Kick Startproject in Perth has won a majorScottish transport award.

The project, which is nowbeing used as a model by theGovernment for similar schemesacross the UK, beat off strongcompetition to take the prize forMost Innovative Transport Projectin Scotland at the Scottish NationalTransport Awards.

Stagecoach also narrowlymissed out on taking theprestigious Scottish PublicTransport Operator of the Yeartitle for its West Scotland busoperation.

The awards, which were

Kick Start project wins innovation awardorganised by the Centre forTransport Policy in Aberdeen, weredesigned to celebrate theachievement of the transportindustry in Scotland.

The Kick Start project was apartnership between Stagecoachand Perth and Kinross Council.

Stagecoach has invested £300,000on the operating route since it wasimproved three years ago.

The company doubled thefrequency of services to every 10minutes, introduced new low floor

buses, and simplified the fares. An innovative telesales campaign

– the first for a bus company – wasused to encourage more people toleave their cars at home and takethe ‘green’ option of the bus.

Perth and Kinross Council alsointroduced a bus priority scheme onthe route, which included bus lanes,priority for buses at traffic signalsand new bus shelters.

Passenger numbers have shot upby 70% in three years and the routeis now used by around 20,000

passengers a week, many of whomregularly leave their cars at home.

The Department for Transport inLondon has taken up the Kick Startconcept and is finalising plans tofund similar projects later this year.

Transport officials at the ScottishExecutive have visited Perth to lookat the results of the project and arecurrently consulting on a scheme forScotland.

On collecting the award, RobertAndrew, Deputy DirectorStagecoach Scotland, said: “We are

delighted that the Kick Startproject has achieved furthernational recognition. Theinitiative has really captured theimagination of politicians, policymakers, transport commentatorsand, most importantly,passengers.

“This award is a reflection ofthe hard work of our team inPerth and the support we havehad from councillors andofficials at Perth and KinrossCouncil. We are now looking atbringing the successful conceptwe have piloted in Perth to otherparts of our bus network acrossthe UK.”

South, offers a flexible, demand-responsive service around Andover,using low-floor vehicles with low-heightboarding, innovative route publicity andbranded bus stops.

Global positioning on the vehiclesallows additional booking whilst thevehicle is already under way. There arefacilities for wheelchairs and buggies,and passengers can arrange their ownstopping points.

Since the service was introduced inJune last year, there has been a 46%increase in passengers, compared withthe services replaced.

Cango now provides more than 500passenger trips per week and has beensupplemented by similar services in theNew Forest, Hart, Basingstoke and LeighPark areas.

Northamptonshire County Counciland a range of partners, including

Stagecoach, were runners-up in theMarketing Award for LocalAuthorities and Joint Projects for theCorby Star initiative.

Corby Star was launched only a fewmonths ago thanks to a successful bidfor £1 million of government money byNorthamptonshire County Council,Corby Borough Council, Catalyst Corbyand Stagecoach East.

The Urban Bus Challenge funding

was invested in 11 brand new low-floorbright orange buses, operated byStagecoach. In only four weeks, theCorby Star achieved a 52% increase inpassenger numbers.

Stagecoach West was highlycommended for its Cumbria and theLakes promotion in the Buses forPleasure category, while Stagecoach’sLeyton depot was similarly recognisedin the Transport for London Awardfor London Bus garage of the Year.

Les Warneford, Managing Directorfor Stagecoach UK Bus, said:“Stagecoach continues to lead the waywhen it comes to innovative approachesto marketing bus services and this is yetanother demonstration of the strength ofour commercial teams.

“I am also delighted that two otherprojects, where we are partners withlocal authorities, have been recognisedat this year’s awards. It shows what canbe achieved when councils and busoperators work together to improveservices for local people.

“All the Stagecoach companies thatmade the final shortlist can be proud oftheir achievement and I am sure all ourcompanies will be working hard to havean even stronger set of entries nextyear.”

The awards were presented byGNER Chief Executive ChristopherGarnett.

• Independent operator Trent Bartonwon the Bus Operator of the YearAward, the third time it has taken thetop accolade.

Transport Secretary Alistair Darling delivers hiskeynote speech.

GNER Chief Executive Chris Garnett presents the 'Schlumberger Sema Eureka Award' to Karen Best and Ray Cossins from Stagecoach Manchester,watched by Domonic Arcari, Director for Transport SEMA.

Chris Garnett presents the ‘Bus in the Countryside Award’ to Alison Quant, Cllr Jonathan Glen and Andrew Dyer, MD Stagecoach South.