On Stagecoach Bought the Business the Yorkshire Traction Livery Which Now Becomes Part of Stagecoach’S Colours

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On Stagecoach Bought the Business the Yorkshire Traction Livery Which Now Becomes Part of Stagecoach’S Colours Joint venture Radical plan for We are simply NZ operations to challenge Manchester’s the best in sold off in the train bus services the business £100m deal The newspaper of Stagecoach Group Issue 61 Winter 2005-06 Pressure fails to dent strong Traction boosts Group results Stagecoach Group posted a strong set of half-year results last month, despite signifi- cant cost pressures affecting the global transport sector. The Group, which was recently named both bus and train operator of the year, increased its profit before tax (excluding pulling power intangible asset amortisation and exception- al items) from £70.6 million in 2004 to £72.1 million in 2005. Strong revenue growth was achieved in £37m acquisition swells Stagecoach fleet to 8,000 the Group’s bus and rail operations in the UK and North America for the six months tagecoach has expanded ended 31 October 2005. The highlights included: Sits UK operations with the • Increased operating profits* at UK Bus purchase of Traction Group, operations+, despite increase of £9.2 the largest privately-owned million in fuel costs bus company in the country. • Expansion of UK Bus division with the acquisition of Glenvale Transport The £37million deal, which was Limited in Merseyside and joint venture completed in December, will add with ComfortDelGro in Scotland bus operations in South and West • Further improvement in operating Yorkshire, Lincolnshire and Tayside margins* in North American bus opera- to Stagecoach’s portfolio. tions Around 2,000 staff are employed • Revenue at UK Rail subsidiaries up by Traction, whose head office is 4.6%, despite the impact of London based in Barnsley, with around 800 terrorist incidents buses operating from 20 depots. • Pre-qualification documentation Stagecoach bought the business The Yorkshire Traction livery which now becomes part of Stagecoach’s colours. submitted for South Western rail from Frank Carter – who prior to franchise the acquisition was Chairman and Barnsley, Lincoln and • Disposal of Stagecoach New Zealand in Managing Director of Traction – Dundee join the November 2005 for NZ$250.5m two trusts in favour of members of Stagecoach UK Bus (approximately £100 million) enterprise his family and a Traction employee network. Liverpool value. share ownership trust. was also added in Frank (67) joined Yorkshire the summer. As a result of the strong performance, the Traction in 1984 as general Stagecoach Traction, and believe we can interim dividend to shareholders was up manager and led the management Group plc, add value through innovation, 10% at 1.1p per share. buy-out in 1986. said: “The investment and by applying Commenting on the results, Stagecoach The acquisition means acquisition Stagecoach’s operational Group Chief Executive Brian Souter said: Stagecoach UK Bus now operates of Traction is expertise. “We are continuing to deliver on our more than 8,000 buses and coaches consistent “Stagecoach’s investment in strategy for organic growth in our bus and and employs around 20,000 with our improved services and initia- rail operations. people. strategy for tives – including Kickstart, “Our focus on innovation, investment It comes only a few months after growth in our sector-leading telemarketing and targeted marketing is producing further Stagecoach bought Merseyside core UK and campaigns and online sales – is revenue growth in our bus operations and operator Glenvale Transport. North seeing large numbers of people we will continue to bid for new rail fran- Stagecoach paid £26million for American markets, return to the nation’s buses and chises. We remain confident in the prospects Traction and also assumed the and follows the acquisi- demonstrates our ability to for the rest of the year and the opportunities company’s net debt of approxi- tion of Glenvale Transport deliver impressive growth." to deliver further shareholder value.” mately £11million. earlier this year. In the recently reported The sixth largest operator of bus gross assets of £50.5million in its “Traction is the largest of the Stagecoach Group results for * excluding restructuring costs, intangible asset amor- services in the UK, Traction financial year ended 31 December remaining privately-owned UK the six months ended 31 tisation and exceptional items reported turnover of £56.6million, 2004. bus operators. We are excited October 2005, revenue in the + excluding acquisition of Glenvale operating profit of £2.5 million and Brian Souter, Chief Executive of by the prospects of acquiring UK Bus division was up 10.5%. £4.5m deal keeps UK bus Intercity coaches in the picture A £4.5 million investment will keep Stagecoach in the picture for years to come. UK Bus has signed an exclusive challenge the train deal for the supply, installation and maintenance of digital closed-circuit systems from LOOK CCTV over the ntercity coach services Joint venture puts Scottish rail operator under pressure next three years. are challenging the train Stagecoach already uses CCTV on I its bus fleet in London and in selected across Scotland as passen- locations across the UK. gers benefit from more “We wanted to standardise on a frequent services, faster single system supplier, allowing us to journey times and better manage the wider deployment excellent value fares. of CCTV across our bus fleet,” said Jim Crompton, Purchasing Manager, The improved services are the Stagecoach UK Bus. result of a joint venture by “We selected LOOK CCTV from transport groups Stagecoach and three suppliers because of the high ComfortDelGro to operate the quality and reliability of its systems.” Scottish services of megabus.com, LOOK is the UK’s leading supplier Motorvator and Scottish Citylink. of digital CCTV with over 6,000 It is hoped the new and more systems installed. It provides bus and competitive coach services will also coach operators with a powerful tool help to cut congestion by tempting in combating crime on buses and Scots motorists out of their cars. reducing fraudulent insurance claims. Passengers taking the coach will Recent LOOK innovations have benefit from: included wireless networks to stream- line CCTV maintenance and high • Services up to every 10 minutes capacity systems for video and audio at peak times on the key recording. Edinburgh-Glasgow commuter “We are delighted to be awarded route – beating First ScotRail’s this exclusive deal with Stagecoach,” timetable of trains every 15 commented Alan Myers, Managing minutes – with four coaches an Director, LOOK CCTV. hour during the rest of the day. “Stagecoach is a valued customer • New faster services linking that we have worked with over a Aberdeen and Inverness with number of years. This three-year deal Glasgow and Edinburgh allows us to develop an even closer • Hourly fast services linking Tom Wileman, Managing Director of the joint venture, pictured at the official launch. working relationship that covers both Aberdeen, Dundee, Perth park existing and new CCTV technologies.” and ride and Glasgow Dundee, Perth, Stirling, • Regular seat prices up to 300% expensive train services and the stress • Hourly fast connections Cumbernauld and Glasgow cheaper than the train of driving on congested roads as they between Perth park and ride • Hourly standard services • The flexible option of web and make the daily trip to and from work. and Edinburgh between Perth, Milnathort, phone booking or walk-on “By offering a simpler timetable Bus drivers • Services every 30 minutes from Kinross, Dunfermline and fares. and faster, more frequent journeys, Dundee to Glasgow and from Edinburgh with excellent value-for-money fares, pass the Edinburgh to Perth • Standard services every two Tom Wileman, Managing Director we believe the coach can compete • Fast services every two hours hours on the Inverness- of the joint venture, said: “This is the head on with the train and the car. linking Inverness and Pitlochry-Perth-Edinburgh route biggest improvement to intercity “The big test for First Scotrail is train test Edinburgh, making the coach • Guaranteed seats compared to coach services in years and marks the whether it is up to the challenge and It wasn’t quite a busman’s holiday faster than the train for many overcrowded peak time trains return of the coach as a real alterna- prepared to cut ticket prices to give but a reward for eight drivers saw journeys • Fares from £1 on both tive to the train in Scotland. customers the kind of low-cost fares them exchange one form of • Simplified timetables with megabus.com and Citylink “For too long, many commuters our coach passengers will enjoy as transport for another. standard hourly services linking services have had to choose between standard.” The Stagecoach Bedford drivers were put through their paces at the controls of a £2.5 million train Contacts simulator as part of a two-day team- building course at Carlisle. The Editor, On Stage, Stagecoach Group, Stagecoach South West Mark Whittle 01392 889747 And to prove their skills go 10 Dunkeld Road, Perth PH1 5TW. National Transport Tokens Sajda Khan 01254 680180 beyond buses, all eight passed the Tel: +44 (0)1738 442111, Fax: +44 (0)1738 580407 test in the full-sized train cab. www.stagecoachgroup.com UK Rail The drivers got to experience what it is like behind the controls of If you have a story for On Stage, please get in touch South West Trains Lisa Davies 0207 620 5892 the latest Virgin Pendelino train as a Island Line Stephen Wade 01983 812591 with your local contact below: reward for their great work Stagecoach Supertram 0114 2759888 Stagecoach Group Steven Stewart 01738 642040 Julia Shaw operating a Virgin Trains coach UK Bus North America contract. Stagecoach Bedford operates Stagecoach East Scotland 01383 516454 Lisa Henry Coach USA Dale Moser 001 201 225 7575 three coaches between Milton Stagecoach West Scotland Allan Henry 01292 613515 Coach Canada Jim Devlin 001 705 748 1170 Keynes and Luton with a dedicated Stagecoach North East Kate Williams 0191 567 5251 driving team of Mark Hind, Maureen Stagecoach North West Colin Nicholson 01772 255752 Scholes, Roy Neesom, Ed Hoxia, Stagecoach Manchester Karen Coventry 0161 276 2727 Mohammed Hanji, Steve Hodgson, Keith Pack and Yasser Kazmi.
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