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Issue 51 Summer 2003

Stagecoach shortlisted We’re back on track for UK award

Stagecoach narrowly missed out on a top honour at the UK National Transport Awards. and picking up speed was shortlisted for Operator of the Year for its transformation of bus services in Stagecoach has cheered city centre over the past two investors with a strong set years. The £4 million investment in the citi of full-year results that network has seen a massive growth in demonstrate it is back on passenger numbers, which are still rising track with a clear strategy at 18% a year. Bus frequencies have been increased, with one route now operating for the future. every seven and a half minutes. Group profit before tax for the The Park and Ride service, run in year to 30 April 2003 was £113 partnership with Cambridgeshire County million – up from £107 million in the Council and Cambridge City Council, is previous year – and there was good also booming and, by the autumn, half of news from across the company’s the Cambridge operation will be run with porfolio. low floor buses. Stagecoach was pipped at the post for Highlights from the results include: the award by Truronian Ltd, the - based bus, coach and taxi operator, which • Continued profitability in all has developed a number of innovative four key operating divisions services in partnership with Cornwall County Council and the Countryside • Good progress in restructuring Agency. Coach USA The National Transport Awards are run by the Centre for Transport Policy and • Terms of new franchise at South presentations are made in 12 categories. West Trains finalised IN THE DRIVING SEAT: Stagecoach Chief Executive with Chairman Robert Speirs and Finance Director Martin Griffiths. The Transport Local Authority of the Year award went to City of York Council. • Improved operational Financial analysts welcomed the He added: “We have a clear portfolio, which will be dominated by A special award for outstanding con- performance benefiting Rail positive set of results, which have strategy for the Group and are on our strong UK bus and rail businesses, tribution to transport was made to the division followed a difficult two years for the schedule with our sales programme and we see further potential for Mayor of London, Ken Livingstone, Group. and restructuring at Coach USA. organic growth across our UK, US and following the successful introduction of • Margin improvement at UK Bus And Brian Souter, who returned to “The Group is in a strong financial New Zealand operations.” congestion charging in the capital. the position of Chief Executive last position as a result of our decisive • Strong revenue and volume year and has been overseeing a action to de-risk our portfolio and we See our four-page Stagecoach growth in New Zealand programme of changes across the continue to reduce net debt. Group results special on Pages business, said: “We are on the way “We will focus on maximising Online travel • Reduced Group net debt. back.” shareholder value from our existing 5 to 8. trial extended A successful pilot scheme to provide rail interests sold off in £176m deal passengers with internet access is being extended. , in conjunction with Stagecoach Group has sold its Hong in Hong Kong, in 1999. Citybus, opportunities and the long-term Executive, said: “The sale will put the Broadreach Networks Limited, is Kong Citybus operation for £176 which employs around 3,300 people, prospects for the business in Hong Group in a strong financial position, extending the trial from London Euston million after receiving an approach for carries over 200 million passengers Kong. further de-risks the Group’s portfolio to also take in Birmingham International the business. each year using a fleet of 1,200 buses. A combination of the uncertainties and will allow management to focus and Piccadilly stations. It has been bought by Delta Pearl Under the Group’s ownership, the about the economic climate in Hong on further developing our UK bus and Passengers can now stay online as Limited, which is linked to New World business has produced strong organic Kong, growing levels of regulation rail businesses, a smaller and more they pass through the station through First Bus, one of Hong Kong’s major growth in passenger volumes and a and the need for significant capital robust portfolio in North America and secure wireless broadband access using bus operators. Proceeds from the sale significant reduction in operating investment in future years led the our successful and growing New wireless-enabled laptops and PDAs will be used to reduce Stagecoach costs. However, the Stagecoach Board to decide that selling the Zealand operations. Stagecoach across the station concourses, cafes and Group’s debt. Board decided to review the strategic business was in the best interests of Group is committed to pursuing its within the first class business lounge. Stagecoach bought Citybus, the options for the Group in the region in shareholders. strategy as a leading international second-largest franchise bus operator view of the limited development Brian Souter, Stagecoach Chief transport company.” Concessionary Poster’s scheme boosts Britain climbs express route sharp

Passengers are flocking to the Stagecoach express X4 route as the advice Welsh Assembly concessionary fares scheme encourages more people to back on board travel by bus. Services between Brynmawr and Stagecoach has been at the The success of the project has new low-floor buses and the creation Abergavenny have doubled in forefront of boosting bus undoubtedly been due to of two simple, well-timed networks frequency following earlier enhance- Stagecoach’s pump-priming backed up by a massive marketing ments to the route between Merthyr services in the UK in a bid investment that doubled the campaign – has been hailed a and Cardiff. to encourage more people frequency of the service, paid for the tremendous success. More than 21,000 smart credit card to hop aboard. introduction of new low-floor buses As well as ensuring passenger size timetables as well as travel The company’s commitment to and helped introduce an innovative growth of 18 per cent for Stagecoach, incentive vouchers were delivered to investing in services across the marketing strategy. the investment has also enabled the residents as part of a door-to-door country, and helping people leave The launch of a range of bus city council hit its target of increasing marketing campaign. their cars at home, has gained priority measures by Perth and overall bus passenger numbers by 20 Meanwhile, the X75 Merthyr to Government recognition and could Kinross Council has also helped per cent, a year earlier than expected. Swansea service has been upgraded to lead to more Kick Start campaigns promote bus travel in the area. Stagecoach Group Chief Executive Stagecoach express and has a smart being launched nationwide. In Fife, the Ferrytoll Park and Ride Brian Souter said all projects had been new look. Over the last 12 months, flagship service is now used by hundreds of an outstanding success. projects in Perth, Fife and Cambridge commuters to cross the Forth each He added: “The initiatives show have proved tremendously successful day. Since it was unveiled two years what can be achieved with targeted Helping promote with many more passengers using ago, the £4.2 million facility, has investment, innovative ideas and the services than last year. achieved annual passenger growth of support of forward-thinking Stagecoach East Marketing Manager green travel In Perth, the Kick Start pilot 32 per cent. authorities. Lisa McCloy shows the needle campaign programme has boosted customer Ferrytoll, the result of a partnership “Stagecoach took a risk by poster. numbers by 60 per cent. And, since between Stagecoach and Fife Council, subsidising these routes because we Stagecoach is working with more the launch in October 2000, two and the winner of the Bus Industry believed that we could make these Discarded syringes are always a cause employers to help encourage their million people in the Perth and Awards 2001, is now set to double in services commercially sustainable and for concern. staff to make greater use of public Kinross area have hopped aboard. size with an extra 1,000 car parking local people would get a better bus And following an incident in Fife transport for work, study or visits. The No. 7 service has proved spaces being created. service. where a young child found one lying The latest Green Travel Fairs were amazingly popular with 20,000 Stagecoach’s £4.5 million “The stunning passenger growth on a bus seat, Stagecoach Scotland, held at NHS Trust Hospitals in passengers opting to leave their cars makeover of Cambridge’s citi network we have seen in Perth, Fife and along with the local authority and and Cheltenham, as well at home each week. – including the delivery of 40 brand Cambridge shows we were right.” police, have gone into partnership to as at Zurich Finance, a major produce the ‘Nashty Needle’ poster employer in the area. campaign. Tailored travel solutions offered by The poster, designed by a Green Travel Plans can mean reduced Lochgelly primary pupil, will go on congestion in our cities, less pollution display in around 300 Stagecoach – and no frustration about finding a Wales goes for Gould buses and warns of the dangers of parking space. touching a discarded syringe and The well-attended travel fairs what you should do if you find one. included displays showing the local Stagecoach is on the right road to From his base in Cwmbran, John helping the Welsh Assembly develop will oversee future business “The Nashty Needles initiative town or city route networks, details of seeks to deliver a serious safety inter-urban routes, plus information its transport network. development across the country. As a result of devolution, the Dr Ian Manning, who has many message in a way that children and on fares and ‘tickets to go’. adults alike can understand,” said a Gloucester, meanwhile, has country now has a greater say in years experience in the bus industry transport issues and Stagecoach UK and headed up Stagecoach’s former police spokesman, “with us benefited from a complete overhaul of also appealing to parents and others Stagecoach publicity, with a compre- Bus has appointed a dedicated business in Portugal, has been Managing Director to reflect this. appointed Managing Director to remind youngsters of the potential hensive service guide – incorporating John Gould dangers.” map, and frequency, fares and ticket This means the existing West and . Wales region will be split in two with He is now responsible for the to the Welsh Assembly, Wales has information – as well as individual If you have an initiative that helps route colour-coded timetable leaflets. the additional appointment of a Stagecoach depots in Cheltenham, become an increasingly important and separate Managing Director for Gloucester, Swindon, Stroud and growing part of our business. the community then we’d like to Stagecoach West. Ross-on-Wye. “I am confident that these changes know about it. Your On Stage John Gould, Managing Director Les Warneford, Stagecoach UK Bus will result in greater local focus on the contact is listed below. A wheel West and Wales, has become Managing Director, said: “Since West and Wales businesses, and I wish challenge Managing Director Stagecoach Wales. devolution of some transport powers both Ian and John every success.” A tale to tell?

Drivers at Stagecoach’s Inveralmond Contacts depot in Perth have raised more than £1150 for charity after getting behind The Editor, On Stage, Stagecoach Group, 10 Dunkeld National Transport Tokens Sajda Khan 01254 680180 the wheel of everything from a fire Road, Perth PH1 5TW. engine to a fork lift truck. Tel: +44 (0)1738 442111, Fax: +44 (0)1738 580407 UK Rail Ann Burnett, Wilma Smith, Jill Ross www.stagecoachgroup.com Kathryn Rowe 0207 620 5238 and Rosie Reid took part in the Ladies If you have a story for On Stage please get in touch with Driving Challenge at Errol Airfield to Stephen Wade 01983 812591 raise cash for Chest, Heart and Stroke your local contact below. Stagecoach Supertram Julia Shaw 0114 2759888 Scotland. Stagecoach Group Steven Stewart 01738 642040 The group also tackled an Overseas articulated lorry and JCB as well as UK Bus Coach USA Patty Kalich 001 713 860 1763 the more familiar territory of a bus. Lisa McCloy 01592 261461 New Zealand Dennis Elliot 00 649 309 3500 Emma Howat 01292 613515 MAD for charity Paul de Santis 0191 566 0209 Colin Nicholson 01772 255752 South West Trains’ passengers and Karen Best 0161 276 2727 On Stage is published four times a year. staff have gone MAD together to help Phil Cartwright 01246 222018 Advertising connected directly or indirectly with Stagecoach is accepted. raise more than £5,000 for the Railway Midlands David Whitley 01865 716030 Charitable adverts will be included without charge, otherwise Children. Stagecoach East Philip Norwell 01604 676060 rates on request. The company organised several Stagecoach West & Wales Stephen Evans 01291 623565 On Stage is distributed free to Stagecoach staff. Public subscrip- events around the network to raise tions are available at £12 for one year or £20 for two years. Cheque 020 8477 7249 money for the charity’s Make a Benjamin Franklin payable to Stagecoach Group plc at the editorial address. The Difference appeal, which helps Helen Martin 01243 536161 Editor is unable to enter into individual correspondence homeless children living near railway Stagecoach South Helen Martin 01243 536161 concerning the affairs of The Stagecoach Group. Designed by Catchline PR and Communications, Scotland. stations around the world. Mark Whittle 01392 889747

2 Summer 2003 New service wins friends in Carolina

It may have taken a century to get a tri-city service on the road but now the bus is proving a real winner with residents in North Carolina. America Charters, Ltd., a Coach USA company, began a contract service with the Piedmont Authority for Regional Transportation (PART) in October. This service is the first public/ private partnership in the state of North Carolina to provide not only drivers, but also equipment to operate the transit system. It is also the first regional transit system to connect three different cities using public transportation – Greensboro, Winston-Salem and High Point – and provides shuttle The new bendy bus vehicles, arranged to spell out TFL (), are launched at Woolwich Barracks. services to the airport. PART is so delighted with the service that it presented America Charters with a plaque for “providing outstanding services”. Work has now begun on future Bend it like Peckham! growth. Feedback from customers and local elected officials is being reviewed by the planning department of PART to see how Round-the-clock bus service helps ease London congestion new resources can be best used to serve the community. Londoners can now beat fast and convenient access, and all Stagecoach London MD Barry Arnold traffic jams thanks to a new vehicles are fitted with the very latest high-tech security equipment. (right) with Dick Hallé, Running up bendy bus. There is no need to wait while Strategy Director, Following the introduction of passengers try to find change to pay (left) congestion charging in the capital, more their fare as the route is a cashless and Hans Smits, MD of the pounds and more people have been looking for operation. Passengers are able to buy Evobus. alternative transport links, and tickets in advance from retail outlets or UK Bus Assistant Management Stagecoach has provided the answer. roadside ticket machines. Accountant Andrew Whittingham A fleet of 35 articulated bendy buses The initiative, part of Transport for has been quick off the mark to has taken to the city’s streets providing a London’s investment in public transport, raise money for charity. round-the-clock service between has seen 120 drivers from Stagecoach’s Andrew (23) completed the Deptford Broadway, just north of Only Plumstead garage undergoing compre- 10km Great Manchester Run in a Fools and Horses’ Peckham, and hensive training before taking to the time of 47 minutes and 6 seconds – Marylebone Station via Circus. road in the new bendy buses. more people take the easy option of the frequent than ever as part of my not bad for his first stab at the Each 18-metre bus is capable of Barry Arnold, Stagecoach London’s bus to beat the jams.” transport strategy,” he said. distance. He finished well up the carrying up to 140 passengers at one Managing Director, said: “The new 24- The Mayor of London, Ken The Deputy Mayor of the London field, coming in among the first time and buses run every six to eight hour bendy bus service is a UK first and Livingstone, said he believed borough of Lewisham, Councillor Gavin 1,100 finishers out of a 10,000- minutes most of the day. we are delighted Stagecoach is again communities across London would Moore, said the new bus service would strong field. Passengers can also benefit from a breaking new ground. benefit from the launch of the new further strengthen the local transport Based at the SSC in Manchester, night bus which operates a frequent “We are running around 100 extra services. infrastructure and provide Lewisham Andrew raised £295 for Cancer service through the centre of London. vehicles with the introduction of “London’s buses are better value, residents with another fast bus link into Research UK, with £143 of it Every bus has three sets of doors for congestion charging, which is seeing more reliable and are getting more London. coming from Stagecoach employees. Management at the SSC have matched the employee donations and a total of nearly £450 now will be going to a very Everyone crazy ‘bout a sharp-dressed plan worthwhile cause.

Wear it with pride – On Stage is proud to reveal your first glimpse of Stagecoach’s new uniforms. the new look which could give Stagecoach the Vested interest smartest and most stylish workforce in the UK A modern new uniform for all frontline staff is in pupil safety due to be unveiled in the autumn with 15,000 bus drivers and inspectors being among the first to benefit. Stagecoach West Scotland has The new range, developed with help from staff, pledged its support to the Safe trade union and management representatives, has Routes to Schools Campaign by been designed for comfort and practicality. sponsoring high visibility vests As well as anoraks made from breathable for primary pupils. materials, the new uniform includes jackets, The initiative was launched in fleeces, trousers, shirts, ties and a special driver’s conjunction with Dumfries and bag all produced by Stagecoach’s supplier Galloway Council at an open day incorporatewear. at Portpatrick school. Inspectors will also be able to brave bad All pupils now have their own weather with new waterproof items of clothing. personalised high visibility vest Les Warneford, Managing Director of so they can be seen by drivers. Stagecoach UK Bus, said the company, which Emma McNae, Marketing spends £1.5 million a year on clothing for staff, Manager Stagecoach West wanted to create a uniform staff would be proud Scotland, said: “Safety is a key to wear. priority within our organisation, “The new look will make us the best-dressed particularly where young people bus company in the business and match the high are involved, and we are standards of service we give to customers,” delighted to be involved in such he said. a positive initiative.” Summer 2003 3 Big Dave’s powerful message to pupils

It’s not every day pupils see a School, the gentle giant began by The show was attended by double-decker bus being pulled showing off his own strengths by Stagecoach South East’s Schools around their playground. hauling the bus 20 yards. Liaison Officer, Tim Pomfret, who But when one of the world’s Then both classes sat entranced as said he was delighted with the strongest men drops in at your he talked to them about the response from the children and their school you’re guaranteed a importance of other qualities such as teachers. memorable visit. showing respect for others. He said: “Our drivers are faced Big Dave visited two different Big Dave’s visit to the school was with behavioural problems most days schools in East Kent as part of a road part of an initiative supported by across Kent and this initiative is a show designed to make youngsters police forces across the country and great way to get the message across more aware of the effects of bullying the Kent People’s Trust, which in an entertaining way.” and anti-social behaviour. provides grants to groups that are So far 100,000 other school During his trip to Sandwich working to improve community children have been visited by the Technology School and Ramsgate safety and reduce crime. road show. Big Dave shows school kids how to pull their weight when it comes to respecting others. Oh we do like Coach USA sell-offs to be beside the seaside…

A striking new seaside design is to be showcased on the side of a Stagecoach keep strategy on track bus in Kent. Around 36 art and design students from Thanet College were invited to create a new colour scheme for a Stagecoach Group has agreed a double-decker bus that would help promote the local region. number of sales at Coach USA as Using the internet and library it makes excellent progress in facilities to research images and delivering the strategy to information relating to the Thanet area, the young designers put their talents to restructure the business. the test. Deals have been agreed for the sale of But, as always, there can be only one two-thirds of the businesses earmarked for winner and Stagecoach’s Commercial disposal as part of the 12 to 18-month Director, Gordon Frost, and Tim programme announced at the end of last Pomfret, Schools Liaison Officer for year. Stagecoach South East, chose the The new deals involve the sale of the colourful seaside design devised by Tim West, South Central, New and Transit Day (19) and Sean Mason (17) as their divisions of the North American business to a favourite. variety of buyers Gordon said: “All of the designs had Private merchant banking firm Kohlberg merit but we had to take into account and Co has agreed terms to buy the West and the practicality of the design and how it South Central regions for $155m. Eighteen would eventually be applied to the businesses in total are being sold, with the vehicle. Tim and Sean’s design, which is deal covering 3,000 employees and around different on each side of the bus, will be 1,500 vehicles. striking when produced.” Coach USA’s Transit division is being sold to First Transit, a US subsidiary of First Group plc, for $22.5m. Transit, which has around 2,000 employees and 1,200 vehicles, operates Coaching enters in 35 locations within the US. , which operates new dimension extensive bus services throughout the North East corridor of the US, is buying Stagecoach in Fife has struck a new deal with Scottish Premier side, Dunfermline Athletic. This new collaborative venture will ensure that Dunfermline’s community programme team can carry on Jim has made a valuable contribution to the community. delivering fun football coaching sessions to under-12s in the area on a not-for- London bids farewell to a Knight of the road profit basis, with further concessions for FifeStyle Premier cardholders. Coach’s New England operation. The $40m Karen McNeill, the Club’s The enthusiasm of East London Coaches driver Jim Tower Hamlets’ Police Constable Denise Wales, deal covers five businesses and a fleet of 255 Community Director, said: “Stagecoach Knight has helped the police and Stagecoach work who has also worked alongside Jim in Newham, buses. wants to ensure a real community together to promote safety on the buses. said his enthusiasm for the job has proved Separately, small taxi operations in benefit from this partnership and we’re Over the years Jim has played a vital role in invaluable. Colorado Springs, Miami, Cincinnati, Kansas really looking forward to working encouraging children in Tower Hamlets and “I would like to say a big thank you to City, and Indianapolis have been closely with it to ensure that objective. Newham to take part in the local police force’s Stagecoach for providing such a dedicated and pro- sold to other operators. At the moment we deliver realistically ‘Junior Citizens’ scheme. fessional member of staff,” she said. Brian Souter, Stagecoach Group Chief priced, quality coaching to over 500 To help youngsters learn more about the “Having worked with Jim for several years now, Executive, said: “We have taken a significant local under-12s every week; the importance of being safe on a bus, the scheme it never fails to amaze me that he is full of step forward in our restructuring of the North Stagecoach deal will allow us to both involved Jim picking groups up from school and enthusiasm for the job in hand.” American business. sustain and increase our range of taking them on a tour around the vehicle. Jim Speaking about the Junior Citizens scheme, Jim “We have now completed or agreed terms programmes, reaching a wider local would point out problems like graffiti, torn seats said that if the efforts of the people involved in the for approximately two thirds of the sales audience.” and lost keys as well as telling them what to do if scheme were to prevent only one incident programme at Coach USA and I am pleased Lisa McCloy, Marketing Manager, they spot a suspicious package. involving a child, then it would be worth it. with the excellent progress we have made to Stagecoach East Scotland, added: To make sure he was always up to date with the date. We are well on track to complete the “Stagecoach is delighted to become the latest health and safety standards, Jim had to attend If you are helping to promote safety on the buses restructuring of Coach USA on time.” official sponsor of the Pars in the a four-week training course held at East London’s then we’d like to know about it. Your On Stage Discussions are continuing with interested community programme. As a key Tate and Lyle factory. contact is listed on p2. parties regarding the sale of the remaining provider of public transport in Fife But now after 22 years with Stagecoach – the last South East, Canada and taxi businesses within Stagecoach looks forward to working 12 as a driver for East London Coaches – Jim is to Coach USA. Moving forward, the Group plans jointly with the club and local schools to retire in August. A tale to tell? to focus on the North East and North Central deliver coaching sessions that will regions of the US. benefit local school children.” 4 Summer 2003 Stagecoach Group plc Preliminary results for the year ended 30 April 2003 Financial highlights Business highlights

• Turnover £2,077m (2002- £2,111m) • Continued profitability in all four key • Total operating profit* £146m (2002 - £167m) operating divisions • Profit before tax* £113m (2002 - £107m) • Good progress in restructuring Coach USA • £575m of exceptional write-downs from Coach USA • c. £300m of disposals announced post year-end review resulting in a statutory loss before tax of £500m • Terms of new franchise at South West Trains finalised (2002 – profit of £42m) • Improved operational performance benefiting Rail • Earnings per share* 6.4p; up from 6.3p Division • Free cash flow up 18% to £218m • Margin improvement at UK Bus • Net debt down £215m to £560m • Strong revenue and volume growth in New Zealand • Full year dividend of 2.6p (2002 – 2.6p)

* excluding goodwill amortisation and exceptional items

Summer 2003 5 CHAIRMAN’S STATEMENT

Stagecoach Group has made positive progress this year towards achieving its key strategic objectives despite challenging issues within the transport sector and a difficult economic environment. Across the Group, we are seeing strong cash generation from each of our four key operating divisions and all are trading profitably. In the UK, our bus division has had a successful year and is delivering increased operating margins with solid revenue and passenger volume growth. We have agreed terms with the Strategic Rail Authority (“SRA”) for a new three- year franchise at South West Trains, which is one of the UK’s largest rail franchises. We are awaiting final approval of this new franchise Robert Speirs agreement from the Government. Restructuring of our Coach USA division is notably where we work closely with forward- progressing well. Earlier this month, we looking local authorities. We have been partic- completed the disposal of our Citybus business ularly successful in the London market. We are in Hong Kong, while our New Zealand bus also pleased that the Government has taken business continues to deliver strong growth. forward our “Kick Start” proposals for targeted The Group’s strong cash flow generation, funding to support the introduction of new coupled with the favourable movement in services and help reinvigorate the UK Bus exchange rates, has allowed us to reduce debt network. for the long-term benefit of the business. Net In the Overseas Bus division, performance debt reduced by £214.6m in the year ended 30 at our New Zealand businesses, where we are April 2003, from £774.6m to £560.0m. seeing strong growth, continues to be very sat- Subsequent to the year-end we have isfactory. Citybus, our Hong Kong bus announced disposals with a gross consideration operation, has been an excellent investment for of approximately £300m. Of these proceeds, the Group since 1999. However, the Board approximately £20m relates to deferred consid- received an approach for the business and felt eration and the remainder will initially be used it was appropriate to review the strategic to reduce Group debt. options for Stagecoach Turnover for the year ‘The Group continues to Group in the region. In view ended 30 April 2003 was of the limited opportunities £2,076.6m (2002 - be a leading interna- to develop significantly £2,111.4m). Total operating tional transport elsewhere in other Pacific profit before goodwill amor- Rim countries and the long- tisation and exceptional company with a strong term prospects for the items was £146.4m (2002 - business in Hong Kong, we £166.6m). Earnings per share portfolio of cash believe the offer was a good CHIEF EXECUTIVE’S OPERATING REVIEW on an equivalent basis were one and that selling the up at 6.4p (2002 - 6.3p). generative businesses.’ business at this time was in The Board of Directors is the best interests of share- recommending that the total holders. Management has been clearly dividend for the year is 2.6p Robert Speirs We have a clear strategy focused on the twin priorities of Overall financial results per share (2002 – 2.6p). for the Group and are on restructuring Coach USA and This comprises the interim dividend of 0.8p schedule with our sales programme and The financial results for the year ended 30 (2002 - 1.3p) and a proposed final dividend of restructuring at Coach USA. The sale of Citybus securing the new franchise at April 2003 reflect the strong underlying cash 1.8p per share (2002 - 1.3p). The Board has has put the Group in a strong financial position, South West Trains. I have been par- flow generation of the Group and the firm confidence in the future prospects for the further de-risking the Group’s portfolio and will ticularly pleased at the progress continued trading profitability of our four key Group and, based on continued strong and allow management to focus on developing our operating divisions. Turnover for the year was stable cash flows and profits within the UK bus and rail businesses, a smaller but more we have made and this will give £2,076.6m (2002 - £2,111.4m). Total operating business, we will look to increase the dividend robust North American business and our greater certainty to shareholders. profit before goodwill amortisation and each year. successful New Zealand operations. The Group We are seeing steady performance benefits exceptional items was £146.4m (2002 - Our two key priorities in recent months continues to be a leading international across the Group as a result of our concentra- £166.6m). Adjusted earnings per share (before have been the restructuring of our Coach USA transport company with a strong portfolio of tion on operationally led management. I goodwill amortisation and exceptional items) operations following a comprehensive business cash generative businesses. believe this has reinvigorated the entrepre- increased from 6.3 pence to 6.4 pence. review and finalising the new South West Trains Following the business review in North neurial approach of management and we are franchise. Focused management action on both America, I was delighted to announce six well placed to deliver growth in our Coach USA of these issues will deliver greater stability and months ago that Brian Souter had taken up the operations, despite the worldwide economic certainty. position of Chief Executive on a permanent slowdown. I am pleased to report that we remain on At Coach USA we remain on course to basis. His energy and entrepreneurial vision course to restructure our Coach USA division deliver on our key restructuring objectives have been the driving force behind the Group and to meet our strategic aims for the business within the 12 to 18 month timetable we set out and the considerable work he has done in within the 12 to 18 month timetable we in December 2002 and this will produce a restructuring our US operations is laying firm outlined in December 2002. We have already smaller but nevertheless substantial and more foundations for a stronger North American announced the disposals of Coach USA’s robust business. business. Transit division, New England, West, and We believe the financial and commercial I was happy to accept the invitation, in South Central regions and a number of its taxi terms we have agreed with the SRA for the new December 2002, to continue as Chairman of the businesses. Together, the gross consideration franchise at South West Trains will deliver a Board. We have been working closely to for these amounts to over US$220m. good and predictable return for our sharehold- refocus the company and I am confident We intend to retain the North East and ers. Stagecoach Group has a dedicated senior North Central regions, which together (in which we have a 49% management team and a committed Board that accounted for around one-third of Coach interest) is continuing to work with the SRA will ensure the Group continues to thrive and USA’s turnover in the year ended 30 April with a view to negotiating new long-term deliver shareholder value. 2003. We are developing the businesses within commercial arrangements for both the West the Coach USA portfolio that perform well and Coast and CrossCountry franchises. Both have predictable revenue streams, as well as franchises are presently receiving SRA funding reducing our exposure to charter and leisure- on the basis of a one year budget set by the related businesses. In addition, we have suc- SRA for the period to February 2004. We remain cessfully retained key management and further confident that new franchise terms can be reduced our corporate and regional overhead agreed that will secure shareholder value for base. Trading at Coach USA, as we predicted, Stagecoach. remains challenging and we have not seen any Our UK Bus operations are producing Robert Speirs major improvement in the trading revenue and passenger volume growth, most Chairman environment. Nevertheless, Coach USA Brian Souter remains cash generative and profitable. We 6 Summer 2003 have many strong performing businesses in the residual Coach USA portfolio and we are continuing to redeploy existing assets to maximise asset utilisation and to eliminate unnecessary capital expenditure. Coach USA’s turnover for the year was £603.0m, compared to £682.3m in the previous year. Operating profit was £14.0m*, compared to £38.4m in 2002, representing a reduction in operating margin from 5.6% to 2.3%. The reduction in operating margin reflects a fall of 0.4% in like for like revenues in our coach and bus operations, increased insurance costs and a significant fall in taxicab utilisation and sales. Action is continuing to maintain strict controls on our cost base and improve operating efficiency. Rail

We have now agreed financial and commercial terms with the SRA for a new three-year franchise at South West Trains. The deal, which has been recommended to the and the Treasury by the SRA Board, is currently awaiting final approval. Together with the current one-year extension this would result in a franchise for the period until February 2007. This will cement our leading position within the UK rail market and combines the right balance of risk and return for our shareholders. Our Rail division has delivered a strong operating profit for the year. At South West Trains, our concentration on driving up sidiaries in the year was up 2.7% at £413.6m operational performance has resulted in (2002: £402.8m). Operating profit was £38.2m UK Bus significant improvements and we are (2002: £31.0m), representing an operating progressing well with the planned introduction margin of 9.2% (2002: 7.7%). This includes Our UK Bus division, the traditional core of of our new £1bn Desiro train fleet. At Virgin liquidated damages of £8.5m in relation to the Group, is performing well. We are Rail Group, the business is benefiting from the late delivery and reliability of new Class 458 benefiting from revenue and passenger focus on service delivery and significant trains. Rail profits are stated after the costs of growth in provincial towns where we are investment in new trains. The replacement of bidding for new franchises. working in partnership with forward-looking the entire CrossCountry fleet has been Passenger volumes at South West Trains local authorities. We have been particularly completed with the introduction of new Virgin increased by 2.1%, or 0.9% after excluding the successful in the London market, where we Voyagers, while the first of the new state-of-the- periods affected by industrial action in the have retained and won a number of tenders. art Pendolino trains are also in service. prior year. New tenders and the operation of additional Network infrastructure difficulties remain a Our share of Virgin Rail Group’s turnover vehicles on behalf of Transport for London concern, however, and we have implemented a for the year amounted to £276.1m (2002 - have added £14.6m in revenue in the year range of measures to mitigate the effects on our £261.2m) and our share of operating profits ended 30 April 2003. Passenger volumes in operation as well as working closely with before exceptional items was £7.2m (2002 - London are up 8.8% and we see further and the Strategic Rail Authority. £10.8m). Passenger volumes for the year are opportunities for growth following the intro- Turnover for our wholly-owned rail sub- 4.7% above the prior year. duction of congestion charging earlier this year. We are taking an industry lead in generating new ideas and believe our “Kick Start” proposal, which is now being taken forward by the UK Government, can benefit communities across the country. The proposal is that the Government sets aside funds, which are used to give short–term impetus for the introduction of new services with the aim that such services would become commercially viable within three years from their commencement. It can deliver more comprehensive bus services, reduced road congestion, better value for the taxpayer, with important environmental and social inclusion benefits. As well as bidding for Government funding in this area, we will continue with our own “Kick Start” programme of investment in buses for routes identified as having organic growth potential and we are also looking at the development of a number of new products and ideas targeted for growth in the next twelve months. Turnover in our UK Bus division has increased by 5.4% to £598.4m (2002: £567.9m). Operating profit was £67.0m, compared to £62.7m in the previous year, and this is after taking account of increases in insurance costs and labour costs, including an increase in pension costs. The operating profit figure is stated after the financing element of vehicle operating leases, which amounted to £0.5m. This represents an operating margin of 11.2% (2002: 11.0%) and reflects the benefits from a wide range of local initiatives to grow revenue, despite a continuing fall in the cost of car ownership. Across the UK, we have invested in new buses with a total capital value of £40.7m during the year to develop our on-the-road product. Total passenger volumes across our UK Bus business have increased by 3.2%. Summer 2003 7 Kong, the growing levels of already had an interest in a significant Overseas Bus regulation and the inability to grow franchised bus operation. The Joint ventures and Our People profit without very significant proposed combination will benefit In New Zealand, where we are the investment or critical mass synergies. from synergies and economies of associates I am delighted with the contribution biggest bus operator, our operations While the outbreak of Severe Acute scale and this will give a solid our people across the globe have have delivered further strong growth. Respiratory Syndrome (“SARS”) earlier platform for the further investment Our share of joint ventures’ and made in meeting the challenges of the We continue to work in close this year continues to impact the prof- that is required in the Hong Kong associates’ operating profits (before past year and I would like to thank partnership with national and local itability of the Hong Kong business, franchised bus market. On that basis, goodwill amortisation and them and our customers for their government to improve bus services, we believe the sale of Citybus was in exceptional items) was £12.6m continued support. I am certain we investing heavily in our operation. the best interests of the business and compared to £18.5m in the prior year. can deliver better services, more “Kick Start” pump-priming funding ‘I am delighted with Stagecoach shareholders, and it will The reduction reflects reduced prof- value to shareholders, and continued has helped enhance services on key allow Stagecoach management to itability at Virgin Rail Group, a security for our employees. corridors and bus passenger growth the contribution our continue to deliver our strategy as a reduction in certain minimum income in Auckland has continued to be leading international transport undertakings from joint ventures at strong. In addition, we remain people across the provider. Road King and movements in foreign actively interested in running the Turnover for the year in Overseas exchange rates applied in translating suburban rail networks in both globe have made in Bus was £183.7m, compared to overseas profits to sterling. In and Auckland. £194.7m in the previous year. addition to Virgin Rail Group (profit Under our ownership since 1999, meeting the Operating profit was £30.3m, £7.2m; 2002 - £10.8m), the results our Hong Kong Citybus operation has compared to £33.4m in the previous include our share of produced strong organic growth in challenges of the year. This represents an operating thetrainline.com’s operating losses passenger volumes and a significant margin of 16.5% (2002 – 17.2%). The which was £4.3m (2002 - £4.4m), our reduction in operating costs. past year’ reduction in operating profit reflects share of profits in Road King of Following an approach for the the disposals of operations in £10.5m (2002 - £12.9m) and our share business, we reviewed the strategic Australia and Portugal, movements in of operating losses of £0.8m (2002 - options for Stagecoach Group in the foreign exchange rates applied in £0.8m) from our other joint ventures Brian Souter region. It was our view that there Brian Souter translating overseas profits to sterling and associates. Chief Executive were limited opportunities to develop and the impact of SARS and a sluggish significantly elsewhere in other our assessment of the sale was based economy on our Hong Kong Pacific Rim countries and the long- on a long-term view of the profitabil- operations. Current trading term prospects for the business in ity and capital requirements of the The results for Overseas Bus * References to the operating profit Hong Kong were uncertain. A business and not the immediate include turnover in respect of Citybus While still early in the new financial of a particular business unit refer to number of factors were assessed in trading conditions. The market for of £132.3m (2002: £148.6m) and year, the Group has started the year operating profit before restructuring coming to a decision, including the franchised bus operations is operating profit of £19.1m (2002: well and is trading in line with our costs, goodwill amortisation and future economic climate in Hong competitive and the purchaser £25.2m). expectations. exceptional items.

8 Summer 2003 Training centre proves a driving force

Devon is fast becoming a driving force in The training officers have in excess of professional environment. training. 150 years PCV driving experience “As an industry, hundreds of drivers With a new driver test pass rate of between them, and hold 35 various are trained to obtain their PCV licence around 150 in the present year and the industry qualifications and certificates. each year. I believe that the way forward induction of new drivers already holding The team is also running a new is to offer our staff better customer PCV licences, the Stagecoach Devon refresher programme for existing staff. service and product training, which will Training School needed sufficient This offers an update to staff on customer enable them to give the customer a better facilities to operate efficiently. service skills, product knowledge, selling service. So the old offices in bus station of tickets and acts as a forum to feed “I think that the new driving school have been refurbished to create a new, back useful information. and refresher course will go a long way fully-equipped driving school. Mark Whittle, Marketing Manager, to achieving this.” Now under the leadership of Training said: “The introduction of ongoing staff If you’ve a story on improving Manager Colin Kneeshaw, who is also training is a big step forward; we have a customer service then we’d like to the delegated DSA Examiner, a team of highly qualified committed team who know about it. Your On Stage contact seven Training Officers operate four needed a more professional environment is listed on p2. training vehicles and run two classrooms in which to operate. TOP OF THE CLASS: (left to right) Gary Chapman, Paul Bishopp, Tony Howland, Mark Etherington, as well as the NVQ process for “All the staff involved worked very Mark Jarman, Tim Davies, Nick Hake and Training Manager Colin Kneeshaw. Stagecoach Devon. hard to create what I think is a modern A tale to tell? Bus-mad Simon is Stagecoach’s

Simon (right) with his bus biggest fan collection and (below) his Stagecoach-adorned bedroom.

On Stage has tracked his grandmother started a Saturday Dennis Parfitt, Simon’s uncle, afternoon treat of taking him on a said: “He has an amazing down a serious contender different bus route every week, a knowledge of local bus firms and for Stagecoach’s biggest habit he still follows. Stagecoach in particular. I think he fan – a 12-year-old Stagecoach drivers have also must be one of Stagecoach’s biggest given Simon pieces of old uniform, fans.” schoolboy from South such as ties, to add to his collection Simon also collects model buses Wales. of memorabilia. and coaches and has built up a Simon Ingham, from Rogerstone, Now Simon has gone one step collection of more than 60 vehicles, Newport, has had an interest in the further – he has persuaded his around half of which are bus and coach industry for as long father, Neil, to turn the front of his Stagecoach buses. as his family can remember. bedroom wardrobe into a replica of He started off taking a keen a Stagecoach single-decker bus! Is Simon our biggest fan? If you interest in the former Crosskeys Neil, a design and technology know someone to challenge for depot and the buses and coaches teacher and deputy headmaster at that title then we would like to that ran on routes that passed his the local secondary school, has hear about them. Your On Stage home. given the wardrobe lights, an index contact is listed on p2. Simon soon got to know the plate, and even a revolving characteristics of each vehicle and destination board. A tale to tell?

A new guide has been launched to one of the most beautiful bus rides Travel is as easy Marathon effort to aid charity in Britain. Route 555, between as ‘A to B to See’ It definitely wasn’t a stroll in the park as Windermere and employees at Stagecoach Manchester Keswick, takes in lakes, faced a battle with the elements when mountains and forests taking part in a charity walk for cystic along its 19-mile stretch. fibrosis. The leaflet features Princess Road depot allocators Fred colour photos and Campion and Pete Marsland, drivers Dave information about many Robertson and Will Nuttall and inspector outstanding sights, Danny Pike faced strong winds and including Thirlmere, driving rain throughout the 26-mile ‘Bogul Castle Rock, Rydal Water Stroll’. and Wythburn Church . It But the event, organised by UMIST also gives details of University in Manchester, was a huge attractions on the route, success with £950 being raised for the such as Brockhole, Rydal charity. Mount and Dove Cottage. And despite the last nine miles of the Colin Nicholson, marathon-length walk being the most Stagecoach North West’s difficult, each member of the five-man Marketing Manager, said: team said they would do it all over again. “Working in partnership with outdoor writer Mark The new guide to some of Britain’s best scenery. Pictured are Fred Campion, Pete Marsland, Dave Richards ‘From A to B to Robertson and Will Nuttall. Fellow walker Danny See’ is part of our new enjoyable travel experience and to encourage Pike was unable to make the photocall. initiative aimed at more visitors to the Lake District to explore this providing a more beautiful area by bus.” Summer 2003 9 Staff and patients at Newcastle General Hospital were Staff’s cash drive helps sick kids delighted to receive their cheque for Kind-hearted staff from Busways in from the Tyne & Wear Metro, but has since Newcastle General Hospital’s ‘bubble £3,000 from Metro Newcastle have made four generous charity been replaced by alternative schemes. appeal’ for children needing bone marrow driver Steve Mitchell donations which should help brighten-up However, donations to the scheme have replacement. (left), Busways driver the lives of local children fighting serious continued over the past few years – Newcastle’s Freeman Hospital received Angie McGill (second illnesses. building up a substantial pot of cash which £3,000, while the Royal Victoria Infirmary from right) and Tony An impressive total of £14,000 was has now been split between four different was given a donation of £3,000 worth of Youmans (right), raised through the emergency aid fund and charitable causes. The emergency aid fund electrical equipment including DVD players, Busways driver and donated to local hospitals and a children’s has now been wound up. televisions and PlayStations for the children. emergency aid fund hospice. The ‘chin up’ appeal, which supports a Microwaves, toasters and kettles for parents committee member. The fund was originally set up for staff local independent children’s hospice, to use while staying with their children in members in need and also included staff received £5,000, while £3,000 went to the hospital were also part of the package. Devon’s cream Down Under service of the crop Stagecoach Devon recently held its long service awards’ dinner at the Langstone Cliff Hotel, Dawlish Warren. Among the recipients was really does rev up Norman Bolt of Exmouth Depot who clocked up an astonishing 40 years on the road. He began as a conductor in In Hutt Valley ministers become drivers 1963 and later drove coaches for . and drivers can become…Ministers! After a health scare in ’95, Extending a bus route in New operating the Stagecoach Flyer, which when doctors thought his career Zealand is quite literally a religious consistently receives the highest was over, he bounced back with experience. customer service satisfaction marks in Stagecoach Devon where he Nine of the 100-plus drivers at the regular regional bus service worked until his retiral. Cityline Hutt Valley are ordained surveys.” The full list of recipients is:- ministers. The extension of the Stagecoach 40 years – M. Prowse (Exeter), And when the Stagecoach Flyer Flyer also takes this high-profile N. Bolt (Exmouth). route in Wellington was extended in service into the home constituency of 35 years – R. Clements May, three of them presided over a the Minister of Transport. (Exmouth), R. Coppen (Torquay), blessing ceremony of the two new 51- Mr Swain also spoke at the launch R. Merryfield (Exeter), D. Conway seat air-conditioned buses that have ceremony and praised Stagecoach for (Sidmouth, retired). been added to the service. its work, both in the local community 30 years – M Roper (Exeter), The VIP guest at the event was and in the whole region. A. Moloey (Torquay), R. Gardiner another minister – Paul Swain, the And, having been a bus driver (Exeter), R. Coker (Sidmouth), Minister of Transport, who also just much earlier in his life, he has a great I.Kneeshaw (Exeter), B. Dance happens to be a former bus driver! affinity with the industry and the trials (Exmouth). “We have a really close-knit team and tribulations of driving ‘in service’. 25 years – B. Tipping of drivers in the Hutt Valley, many The Stagecoach Flyer started in (Torquay), D. Smith (Exeter), R. with very close links to the November 1999. Designed as a Hayward (Exeter), R. Malyon community,” said Warwick Williams, frequent and fast connection between (Ottery St Mary). Manager Cityline Hutt Valley. Lower Hutt and the airport, via “Discovering that so many of them Wellington City, it has, so far, carried are leaders in their relative churches more than 1,000,000 passengers. and community groups initially Bus tour party surprised me. However, I have Do you have a ‘strange but true’ quickly learnt to appreciate how this story for us ? Your On Stage contact full of praise contributes so positively to the good is listed on p2. working atmosphere we have. West of Scotland driver Shaw “I am especially proud of the Lindsay is tops with a team of MORNING SERVICE: Reverends and Flyer bus drivers (left to right) Lance Keevey, Maurice Kapene, Tom Patuwai. group of drivers dedicated to A tale to tell? Stateside visitors. Kilmarnock-based Shaw drove the Masters Commission Group visiting from America on Midlands their tour of Scotland in May and his skill drew much praise. Described by the group as an “amazing driver” for his honour patience, punctuality and easy manner, he was crowned the number one bus driver in the loyal world for making the trip so enjoyable and for going above service and beyond the call of duty. Bowled over Stagecoach East Midlands recently held its annual long service awards. Staff from a number of Ayrshire The event, at the Hassop Hall depots recently took on the might Hotel, near Bakewell, Derbyshire, of Ardrossan Outdoor Bowling recognised 27 employees who had Centuries of loyal service – the long-service award recipients with Les Warneford, East Midlands Managing Director Paul Lynch and Club. attained 815 years of service between Operations Director Richard Kay. The challenge match was them. organised by the club president of The awards were presented by UK (Chesterfield), John Booth (Worksop). Stephen Methven (Mansfield), John Kirkwood (Chesterfield), Neil the bowling club and Stagecoach Bus Managing Director Les Warneford 35 years – John Halbery French (Chesterfield), John Bacon Hemsley (Chesterfield), Ian West Scotland driver Willie Hay. and the full list of recipients was: (Chesterfield), Eric Marsh (Chesterfield). Hopkinson (Worksop), Jack Fletcher Despite the valiant efforts of the 40 years – Edward Longmate (Chesterfield), Anthony Myers 25 years – Paul Stead (Grimsby), (Chesterfield), Jamie Waddell Stagecoach team, the more (Chesterfield), Ernest Grunnill (Worksop), John Longbottom (Hull). Robert Birks (Chesterfield), Eric (Worksop), William Baker (Hull), seasoned campaigners took the (Mansfield), Malcolm Parker 30 years – Keith Margarson Broom (Chesterfield), Graham Brian Johnson (Hull), Trevor Heeson honours. (Mansfield), Michael Storey (Grimsby), William Gane (Grimsby), Hemingray (Chesterfield), Stephen (Hull), Brian Tribe (Hull). 10 Summer 2003 Exeter marks its spot on Inter-Depot Shield

Stagecoach’s Inter-Depot Golf Peterborough depot, said the day was Exeter’s M. Tomkins also made his competition got off to a swinging start hugely successful with colleagues from mark and was presented with the Best with 146 players from 27 different across the country competing for the Individual Trophy, while the runner- depots turning up to tee-off. coveted Inter-Depot Shield. up prize went to D. Wildgoose from This year’s tournament took centre But, as always, there can only be Glossop depot. stage at the Rutland County Golf Club one winner and this year the Thanking his fellow event near Peterborough. champions were the Exeter team – organisers, Dave Murphy, Dave Organiser Mick Butcher, from Captain S Easter, J. Jarman, L. Frost and Longman and Mark Downer, as well as M. Tomkins. Steve Lowe, Director of Golf at Rutland The Bromley team – S. Jardine, D. County, Mick said he is now planning The triumphant Exeter team shows Soper, P. McPhund and M. Cole – were to make next year’s event even bigger off its trophies. presented with runners-up medals. and better. Careful Coach clocks up nine centuries of safety

Coach USA drivers have celebrated a total of 900 years of staying safe behind the wheel. Fifty eight of the drivers from the NE Region’s Northern and Southern Districts were invited to attend two special safety awards ceremonies in to mark their excellent safety records. The longest was set by Stephan Majofsky, who has notched up an astounding 31 accident-free years of driving for Suburban Coach. “I am delighted and honoured to receive this recognition,” said Stephan. “I have been a driver for more than 30 years and, with the roads getting busier, I think it is great that so many of us have such safe long-term records. Hot on his heels was Robert Teele, who has enjoyed 30 years of driving safely. Covering 53 million miles a year, all drivers – from Rockland Coach, , International Bus, , Red & Tan, Leisure Line, Suburban and Cape Transit – have completed at least 10 years of accident- free service with the average length of time being 16 years. Roger Bowker, Senior President for Coach USA NE Region, said: “We are very proud of our 58 drivers and their tremendous safety records. Many of our drivers have over 25 years of safe driving and we believe their achieve- ments deserve to be recognised and Representatives of Rockland Coach, Community Coach, International Bus and Leisure Line who won safety awards for the NE Region Northern District. INSET : Suburban Coach celebrated.” drivers Stephan Majofsky (left) and Robert Teele who, between them, have a 60-year safety record.

New medal bid for curler Katie Roy’s big day In our last edition (Issue 50), PA Katie Loudon and the rest of – missed out on a top spot in the set off with high expectations. we featured a story about her fellow curlers missed out on a event eventually won by the USA. Unfortunately, we were unable to Folkestone driver Roy Carter, medal at the World Championships But the team is hoping to build regain the consistency we showed who has retired after more in Canada – but they are already on its experience of major champi- earlier in the season. than 40 years’ service on buses planning their next push for a onships with a fresh bid for medals “Our focus now is to use the in the area. We would like to place on the winners’ podium. and is already preparing for the experiences and knowledge point out that the party to Katie, who works with Group European Championships in gained from winning and losing to mark the event was organised Finance at Stagecoach Group’s HQ Courmayeur, Italy, in December. prepare for the Europeans in Italy by Roy and his wife, Patricia, in Perth, was part of a four-strong “Winnipeg was a hotbed of later this year.” and not by staff and team, led by her sister Edith, curling and the whole World All four have competed at management as stated in our which represented Scotland at the Championship experience was European, World Junior and World article. We would like to World Championships in Winnipeg fantastic,” said Katie. Championship level with Edith and apologise to Roy and Patricia, in April. “We had great support from Katie also taking part in the 1998 and again give them our best The rink – which also included everyone, including our sponsors Winter Olympics in Japan where wishes for the future. COOL CUSTOMER: Katie Loudon in action. Karen Addison and Lynn Cameron Drambuie and Stagecoach, and we they finished fourth. Summer 2003 11 Drivers scoop surprise Students online award

Jon Down and Des Hughes were in for a surprise when they and on the buses! visited a school to see pupils honoured for improving their conduct on school Unirider helps nurture Unirider – buses. The Stagecoach future passenger loyalty South East drivers passport to dropped in at St. Edmund’s School, paradise Dover, where the Stagecoach is to expand web-based sales of its youngsters they had innovative student Unirider ticket later this year. worked with were Student Victoria Bell has just receiving certificates Already 15% of the innovative “We believe there is a significant the ticket for relaxing from a under the locally-run tickets are sold via the web as the potential to get similar results from year of study – a dream Safe Travel to School company continues to exploit the the student market in other key holiday. scheme. huge potential of the internet. centres across the UK. The Manchester University But the sterling Now it is set to build on its “If students see the quality and student bought her annual work done by Jon and successful student marketing drive in good value of our product at this Student Unirider ticket in Des was also Manchester by expanding web-based stage in their lives, we will have a September from the recognised by the sales of the product to a host of new much greater chance of them seeing Stagecoach website and was organisers with a locations. the bus as an attractive option later in entered into the prize draw. surprise cheque and A new improved e-commerce site their careers.” From over 5,000 Unirider certificate presenta- will be used to target students Stagecoach’s Unirider campaign customers, Victoria’s name was tion! returning for the start of the new term in Manchester, targeted at the crucial picked out of the hat as the Tim Pomfret, in the autumn. 40,000-strong student market, has lucky winner of £500 worth of Stagecoach’s Schools The campaign will be rolled out achieved growth of 45% in two years. holiday vouchers for the Liaison Officer for to Newcastle, Warwick, Lancaster, There has also been an encouraging holiday of her choice. Kent and Hastings, and , with further locations shift towards annual ticket sales that Unirider offers students said he was delighted planned later in the year. generate increased loyalty among unlimited travel on Stagecoach with the recognition Paul Bunting, Business customers. and Magic Buses in Greater given to the good Development Director at Stagecoach A comprehensive marketing Manchester for a term or an rapport between UK Bus, said: “Internet-based campaign is being developed to academic year. drivers and pupils. services are becoming an increas- support the launch of the improved Victoria, who lives in “Stagecoach ingly important channel in meeting e-commerce site. Whalley Range and is studying transports more than the needs of our customers and, in The original Manchester Unirider English Language, plans to 1,300 school children Manchester, some 15% of our total campaign picked up the UK Bus Victoria (left) receives her holiday vouchers from Marketing Manager spend her vouchers on a in the region every student sales are now via our Industry Award for Marketing at the Karen Best. holiday in Tunisia. day so the importance stagecoachbus.com website. end of 2002. of good behaviour and the safe use of bus transport are crucial,” Aliens travel he added. Fast forward to the future free in Station Chesterfield back in The future is now for Virgin’s new state-of- Although twisted spires are a common the art Pendolino trains. enough sight in Chesterfield, you don’t Passengers travelling on routes between really expect to see aliens in the town. business London, Manchester and the West Midlands But when Stagecoach East Midlands have been able to experience the revolu- launched its new Chesterfield network in Train services have tionary ‘Train of the Future’ since a regular April, alien-spotting was the only game returned to Chandler’s service was launched in June. in town. Ford in Hampshire – 34 Prior to this only a limited service was As part of the biggest reorganisation years after the last available but now 20 Pendolino trains take of services the town had seen since passengers used the to the tracks each weekday on these routes. deregulation, a greatly improved station. It now takes just 3hr 28mins to travel network of services was introduced. Hampshire County from Manchester Piccadilly to London Services were simplified and Council, the Strategic Euston, including four stops along the way improved to provide easy to understand Rail Authority, South at Stockport, Wilmslow, Stafford and Milton and easy to use routes. West Trains and Keynes, and just 2hr 24mins from Knowing that all aliens are natural Network Rail have Wolverhampton to London Euston, travel experts, some friendly specimens worked in partnership to including stops at Birmingham New Street, were co-opted to help launch develop a new rail link Birmingham International, Rugby and Milton Chesterfield’s network of the future. and station building. Keynes. Along with selected old and new Work on the station And more Pendolinos are to be buses, these intergalactic friends helped building is progressing introduced on other services – including spread the word. well and should be weekends – from July. Anyone spotting an ‘alien’ was completed in October. The introduction of 53 Pendolino trains, rewarded with a free travel voucher, South West Trains each costing a cool £11 million, is thanks to which gave customers, old and new, a Commercial Director a massive investment by Virgin Trains. chance to sample Stagecoach’s new Rufus Boyd said: “The Virgin Trains Chief Executive Chris Green services. reopening of the station said: “This is the next stage in the introduc- To add to the fun, passengers at Chandler’s Ford tion of our state-of-the-art Pendolino Trains. presenting themselves in alien costume represents a step change Over the coming months we will be putting drive Pendolinos on the 209-mile Rugby and Nuneaton until mid-July also travelled free. in train journey opportu- even more on the London-Manchester and stretch between London and Preston. and testing of trains has Early indications show that the new nities and provides London-West Midlands route working both A full passenger service is expected recommenced in the Merseyside services are proving popular with Hampshire rail peak and off-peak services.” to be in operation by the end of this area. customers. passengers with vital And it won’t be long before passengers year. And, following successful test runs Whilst Stagecoach can’t yet offer trips connections at key can also hop aboard tilting trains on the Saturday night and Sunday at 140 mph, the new Pendolino to Jupiter or Saturn, the more down to locations to the rest of West Coast route. morning high-speed test runs will 390002 Red Revolution is set to step earth needs of customers in Chesterfield the railway network.” Drivers are currently being trained to continue to be conducted between up a gear with tests at 145 mph. are being met better than ever before. 12 Summer 2003