RNS Number:1668P
Stagecoach Group PLC
29 August 2003




29th August 2003

                              STAGECOACH GROUP PLC

                                 AGM STATEMENT

Extracts of a speech by Robert Speirs, Chairman of Stagecoach Group plc, at the
23rd Annual General Meeting of the company held today at the Lesser City Hall,
Perth.

OVERVIEW

The past year has been one of major change and progress at Stagecoach Group.
Despite the challenging issues within the transport sector as a whole and a
difficult economic environment, I am delighted to report that we have made
significant headway in achieving our strategic objectives in terms of
restructuring Coach USA and securing the new franchise at South West Trains.

CURRENT TRADING

Trading in the first few months of the financial year has met our expectations.
We are pleased with the performance in each of our four divisions: UK Bus, Coach
USA, Stagecoach New Zealand and UK Rail.

Our UK Bus business continues to benefit from revenue and passenger growth.
Revenues for the 16 weeks ended 16 August 2003 are 8.0% above the prior year.

We are continuing to make excellent progress on the restructuring of Coach USA
and the majority of businesses for disposal have already been confirmed. We are
now pressing ahead with the remaining elements of our disposal programme.
Although like for like US dollar revenues for the three months ended 31 July
2003 are 4.0% below the prior year, overall operating profits at Coach USA at
the start of the new financial year are satisfactory.

Our New Zealand businesses continue to perform well. Like for like revenues for
the 16 weeks ended 16 August 2003 are 8.7% above the prior year.

In the Rail division, South West Trains is operating under the terms of the
13-period extension to its original franchise. The new franchise will begin in
February 2004. Trading has been strong in the first few months of the year and
we have seen a year on year increase in passenger volumes and revenues. Revenues
for the 16 weeks ended 16 August 2003 are 5.3% above prior year levels.
Operational performance continues to be impacted by poor infrastructure
performance by Network Rail. South West Trains' own operational performance is
meeting our expectations, and a step change in the performance of Network Rail
is required to provide a more reliable railway for passengers.

The two Virgin Rail Group franchises are operating on the basis of a one-year
budget set by the Strategic Rail Authority ("SRA") for the period to February
2004. Virgin Rail Group is in discussion with the SRA regarding new franchise
terms beyond February 2004.


Our investment in our associate company Road King Infrastructure Limited
continues to perform well.



                                     -ends-

Enquiries:

Stagecoach Group                                        01738 442 111

Steve Stewart, Head of Media and Public Affairs



Smithfield Financial                                    07785 275 665

John Kiely






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