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Stagecoach’sbiggest fan
Down Underservice
The newspaper of
Stagecoach Group
Issue 51
Summer 2003
A successful pilot scheme to provide railpassengers with internet access is beingextended.
Virgin Trains, in conjunction withBroadreach Networks Limited, isextending the trial from London Eustonto also take in Birmingham Internationaland Manchester Piccadilly stations.
Passengers can now stay online asthey pass through the station throughsecure wireless broadband access usingwireless-enabled laptops and PDAsacross the station concourses, cafes andwithin the first class business lounge.
Stagecoach narrowly missed out on a tophonour at the UK National TransportAwards.
Stagecoach East was shortlisted forPublic Transport Operator of the Year forits transformation of bus services inCambridge city centre over the past twoyears.
The £4 million investment in the citinetwork has seen a massive growth inpassenger numbers, which are still risingat 18% a year. Bus frequencies have beenincreased, with one route now operatingevery seven and a half minutes.
The Park and Ride service, run inpartnership with Cambridgeshire CountyCouncil and Cambridge City Council, isalso booming and, by the autumn, half ofthe Cambridge operation will be run withlow floor buses.
Stagecoach was pipped at the post forthe award by Truronian Ltd, the Cornwall-based bus, coach and taxi operator, whichhas developed a number of innovativeservices in partnership with CornwallCounty Council and the CountrysideAgency.
The National Transport Awards are runby the Centre for Transport Policy andpresentations are made in 12 categories.The Transport Local Authority of the Yearaward went to City of York Council.
A special award for outstanding con-tribution to transport was made to theMayor of London, Ken Livingstone,following the successful introduction ofcongestion charging in the capital.
Stagecoachshortlistedfor UK award
Online traveltrial extended
Stagecoach Group has sold its HongKong Citybus operation for £176million after receiving an approach forthe business.
It has been bought by Delta PearlLimited, which is linked to New WorldFirst Bus, one of Hong Kong’s majorbus operators. Proceeds from the salewill be used to reduce StagecoachGroup’s debt.
Stagecoach bought Citybus, thesecond-largest franchise bus operator
in Hong Kong, in 1999. Citybus,which employs around 3,300 people,carries over 200 million passengerseach year using a fleet of 1,200 buses.
Under the Group’s ownership, thebusiness has produced strong organicgrowth in passenger volumes and asignificant reduction in operatingcosts. However, the StagecoachBoard decided to review the strategicoptions for the Group in the region inview of the limited development
opportunities and the long-termprospects for the business in HongKong.
A combination of the uncertaintiesabout the economic climate in HongKong, growing levels of regulationand the need for significant capitalinvestment in future years led theBoard to decide that selling thebusiness was in the best interests ofshareholders.
Brian Souter, Stagecoach Chief
Executive, said: “The sale will put theGroup in a strong financial position,further de-risks the Group’s portfolioand will allow management to focuson further developing our UK bus andrail businesses, a smaller and morerobust portfolio in North America andour successful and growing NewZealand operations. StagecoachGroup is committed to pursuing itsstrategy as a leading internationaltransport company.”
Citybus interests sold off in £176m deal
Stagecoach has cheeredinvestors with a strong setof full-year results thatdemonstrate it is back ontrack with a clear strategyfor the future.
Group profit before tax for theyear to 30 April 2003 was £113million – up from £107 million in theprevious year – and there was goodnews from across the company’sporfolio.
Highlights from the results include:
• Continued profitability in all four key operating divisions
• Good progress in restructuring Coach USA
• Terms of new franchise at South West Trains finalised
• Improved operational performance benefiting Rail division
• Margin improvement at UK Bus
• Strong revenue and volume growth in New Zealand
• Reduced Group net debt.
We’re back on trackand picking up speed
Financial analysts welcomed thepositive set of results, which havefollowed a difficult two years for theGroup.
And Brian Souter, who returned tothe position of Chief Executive lastyear and has been overseeing aprogramme of changes across thebusiness, said: “We are on the wayback.”
He added: “We have a clearstrategy for the Group and are onschedule with our sales programmeand restructuring at Coach USA.
“The Group is in a strong financialposition as a result of our decisiveaction to de-risk our portfolio and wecontinue to reduce net debt.
“We will focus on maximisingshareholder value from our existing
portfolio, which will be dominated byour strong UK bus and rail businesses,and we see further potential fororganic growth across our UK, US andNew Zealand operations.”
See our four-page StagecoachGroup results special on Pages5 to 8.
IN THE DRIVING SEAT: Stagecoach Chief Executive Brian Souter with Chairman Robert Speirs and Finance Director Martin Griffiths.
2
ContactsThe Editor, On Stage, Stagecoach Group, 10 DunkeldRoad, 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 Howat 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 & 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 889747
National 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 correspondenceconcerning the affairs of The Stagecoach Group.
Designed by Catchline PR and Communications, Scotland.
Summer 2003
Stagecoach has been at theforefront of boosting busservices in the UK in a bidto encourage more peopleto hop aboard.
The company’s commitment toinvesting in services across thecountry, and helping people leavetheir cars at home, has gainedGovernment recognition and couldlead to more Kick Start campaignsbeing launched nationwide.
Over the last 12 months, flagshipprojects in Perth, Fife and Cambridgehave proved tremendously successfulwith many more passengers usingservices than last year.
In Perth, the Kick Start pilotprogramme has boosted customernumbers by 60 per cent. And, sincethe launch in October 2000, twomillion people in the Perth andKinross area have hopped aboard.The No. 7 service has provedamazingly popular with 20,000passengers opting to leave their carsat home each week.
The success of the project hasundoubtedly been due toStagecoach’s pump-priminginvestment that doubled thefrequency of the service, paid for theintroduction of new low-floor busesand helped introduce an innovativemarketing strategy.
The launch of a range of buspriority measures by Perth andKinross Council has also helpedpromote bus travel in the area.
In Fife, the Ferrytoll Park and Rideservice is now used by hundreds ofcommuters to cross the Forth eachday. Since it was unveiled two yearsago, the £4.2 million facility, hasachieved annual passenger growth of32 per cent.
Ferrytoll, the result of a partnershipbetween Stagecoach and Fife Council,and the winner of the Bus IndustryAwards 2001, is now set to double insize with an extra 1,000 car parkingspaces being created.
Stagecoach’s £4.5 millionmakeover of Cambridge’s citi network– including the delivery of 40 brand
new low-floor buses and the creationof two simple, well-timed networksbacked up by a massive marketingcampaign – has been hailed atremendous success.
As well as ensuring passengergrowth of 18 per cent for Stagecoach,the investment has also enabled thecity council hit its target of increasingoverall bus passenger numbers by 20per cent, a year earlier than expected.
Stagecoach Group Chief ExecutiveBrian Souter said all projects had beenan outstanding success.
He added: “The initiatives showwhat can be achieved with targetedinvestment, innovative ideas and thesupport of forward-thinkingauthorities.
“Stagecoach took a risk bysubsidising these routes because webelieved that we could make theseservices commercially sustainable andlocal people would get a better busservice.
“The stunning passenger growthwe have seen in Perth, Fife andCambridge shows we were right.”
Stagecoach is on the right road tohelping the Welsh Assembly developits transport network.
As a result of devolution, thecountry now has a greater say intransport issues and Stagecoach UKBus has appointed a dedicatedManaging Director to reflect this.
This means the existing West andWales region will be split in two withthe additional appointment of aseparate Managing Director forStagecoach West.
John Gould, Managing DirectorWest and Wales, has becomeManaging Director Stagecoach Wales.
From his base in Cwmbran, Johnwill oversee future businessdevelopment across the country.
Dr Ian Manning, who has manyyears experience in the bus industryand headed up Stagecoach’s formerbusiness in Portugal, has beenappointed Managing DirectorStagecoach West.
He is now responsible for theStagecoach depots in Cheltenham,Gloucester, Swindon, Stroud andRoss-on-Wye.
Les Warneford, Stagecoach UK BusManaging Director, said: “Sincedevolution of some transport powers
Britain climbsback on board
Wales goes for Gould
to the Welsh Assembly, Wales hasbecome an increasingly important andgrowing part of our business.
“I am confident that these changeswill result in greater local focus on theWest and Wales businesses, and I wishboth Ian and John every success.”
Discarded syringes are always a causefor concern.
And following an incident in Fifewhere a young child found one lyingon a bus seat, Stagecoach Scotland,along with the local authority andpolice, have gone into partnership toproduce the ‘Nashty Needle’ postercampaign.
The poster, designed by aLochgelly primary pupil, will go ondisplay in around 300 Stagecoachbuses and warns of the dangers oftouching a discarded syringe andwhat you should do if you find one.
“The Nashty Needles initiativeseeks to deliver a serious safetymessage in a way that children andadults alike can understand,” said apolice spokesman, “with usalso appealing to parents and othersto remind youngsters of the potentialdangers.”
Poster’ssharpadvice
Stagecoach East Scotland Marketing ManagerLisa McCloy shows the needle campaignposter.
John Gould
Concessionaryscheme boostsexpress routePassengers are flocking to theStagecoach express X4 route as theWelsh Assembly concessionary faresscheme encourages more people totravel by bus.
Services between Brynmawr andAbergavenny have doubled infrequency following earlier enhance-ments to the route between Merthyrand Cardiff.
More than 21,000 smart credit cardsize timetables as well as travelincentive vouchers were delivered toresidents as part of a door-to-doormarketing campaign.
Meanwhile, the X75 Merthyr toSwansea service has been upgraded toStagecoach express and has a smartnew look.
Stagecoach is working with moreemployers to help encourage theirstaff to make greater use of publictransport for work, study or visits.
The latest Green Travel Fairs wereheld at NHS Trust Hospitals inGloucester and Cheltenham, as wellas at Zurich Finance, a majoremployer in the area.
Tailored travel solutions offered byGreen Travel Plans can mean reducedcongestion in our cities, less pollution– and no frustration about finding aparking space.
The well-attended travel fairsincluded displays showing the localtown or city route networks, details ofinter-urban routes, plus informationon fares and ‘tickets to go’.
Gloucester, meanwhile, hasbenefited from a complete overhaul ofStagecoach publicity, with a compre-hensive service guide – incorporatingmap, and frequency, fares and ticketinformation – as well as individualroute colour-coded timetable leaflets.
A wheelchallengeDrivers at Stagecoach’s Inveralmonddepot in Perth have raised more than£1150 for charity after getting behindthe wheel of everything from a fireengine to a fork lift truck.
Ann Burnett, Wilma Smith, Jill Rossand Rosie Reid took part in the LadiesDriving Challenge at Errol Airfield toraise cash for Chest, Heart and StrokeScotland.
The group also tackled anarticulated lorry and JCB as well asthe more familiar territory of a bus.
MAD for charitySouth West Trains’ passengers andstaff have gone MAD together to helpraise more than £5,000 for the RailwayChildren.
The company organised severalevents around the network to raisemoney for the charity’s Make aDifference appeal, which helpshomeless children living near railwaystations around the world.
Helping promote green travel
A tale to tell?
If you have an initiative that helpsthe community then we’d like toknow about it. Your On Stagecontact is listed below.
3Summer 2003
Londoners can now beattraffic jams thanks to a newbendy bus.
Following the introduction ofcongestion charging in the capital, moreand more people have been looking foralternative transport links, andStagecoach has provided the answer.
A fleet of 35 articulated bendy buseshas taken to the city’s streets providing around-the-clock service betweenDeptford Broadway, just north of OnlyFools and Horses’ Peckham, andMarylebone Station via Oxford Circus.
Each 18-metre bus is capable ofcarrying up to 140 passengers at onetime and buses run every six to eightminutes most of the day.
Passengers can also benefit from anight bus which operates a frequentservice through the centre of London.
Every bus has three sets of doors for
fast and convenient access, and allvehicles are fitted with the very latesthigh-tech security equipment.
There is no need to wait whilepassengers try to find change to paytheir fare as the route is a cashlessoperation. Passengers are able to buytickets in advance from retail outlets orroadside ticket machines.
The initiative, part of Transport forLondon’s investment in public transport,has seen 120 drivers from Stagecoach’sPlumstead garage undergoing compre-hensive training before taking to theroad in the new bendy buses.
Barry Arnold, Stagecoach London’sManaging Director, said: “The new 24-hour bendy bus service is a UK first andwe are delighted Stagecoach is againbreaking new ground.
“We are running around 100 extravehicles with the introduction ofcongestion charging, which is seeing
On Stage is proud to reveal your first glimpse ofthe new look which could give Stagecoach thesmartest and most stylish workforce in the UK
A modern new uniform for all frontline staff isdue to be unveiled in the autumn with 15,000 busdrivers and inspectors being among the first tobenefit.
The new range, developed with help from staff,trade union and management representatives, hasbeen designed for comfort and practicality.
As well as anoraks made from breathablematerials, the new uniform includes jackets,fleeces, trousers, shirts, ties and a special driver’sbag all produced by Stagecoach’s supplierincorporatewear.
Inspectors will also be able to brave badweather with new waterproof items of clothing.
Les Warneford, Managing Director ofStagecoach UK Bus, said the company, whichspends £1.5 million a year on clothing for staff,wanted to create a uniform staff would be proudto wear.
“The new look will make us the best-dressedbus company in the business and match the highstandards of service we give to customers,”he said.
Everyone crazy ‘bout a sharp-dressed plan
Bend it like Peckham!Round-the-clock bus service helps ease London congestion
more people take the easy option of thebus to beat the jams.”
The Mayor of London, KenLivingstone, said he believedcommunities across London wouldbenefit from the launch of the newservices.
“London’s buses are better value,more reliable and are getting more
frequent than ever as part of mytransport strategy,” he said.
The Deputy Mayor of the Londonborough of Lewisham, Councillor GavinMoore, said the new bus service wouldfurther strengthen the local transportinfrastructure and provide Lewishamresidents with another fast bus link intoLondon.
Stagecoach LondonMD Barry Arnold(right) with Dick Hallé,Strategy Director,London Buses (left)and Hans Smits, MD ofEvobus.
The new bendy bus vehicles, arranged to spell out TFL (Transport for London), are launched at Woolwich Barracks.
Wear it with pride –Stagecoach’s new uniforms.
It may have taken a century to geta tri-city service on the road butnow the bus is proving a realwinner with residents in NorthCarolina.
America Charters, Ltd., a CoachUSA company, began a contractservice with the PiedmontAuthority for RegionalTransportation (PART) in October.
This service is the first public/private partnership in the state ofNorth Carolina to provide not onlydrivers, but also equipment tooperate the transit system.
It is also the first regional transitsystem to connect three differentcities using public transportation –Greensboro, Winston-Salem andHigh Point – and provides shuttleservices to the airport.
PART is so delighted with theservice that it presented AmericaCharters with a plaque for“providing outstanding services”.
Work has now begun on futuregrowth. Feedback from customersand local elected officials is beingreviewed by the planningdepartment of PART to see hownew resources can be best used toserve the community.
New servicewins friendsin Carolina
Stagecoach West Scotland haspledged its support to the SafeRoutes to Schools Campaign bysponsoring high visibility vestsfor primary pupils.
The initiative was launched inconjunction with Dumfries andGalloway Council at an open dayat Portpatrick school.
All pupils now have their ownpersonalised high visibility vestso they can be seen by drivers.
Emma McNae, MarketingManager Stagecoach WestScotland, said: “Safety is a keypriority within our organisation,particularly where young peopleare involved, and we aredelighted to be involved in sucha positive initiative.”
Vested interestin pupil safety
UK Bus Assistant ManagementAccountant Andrew Whittinghamhas been quick off the mark toraise money for charity.
Andrew (23) completed the10km Great Manchester Run in atime of 47 minutes and 6 seconds –not bad for his first stab at thedistance. He finished well up thefield, coming in among the first1,100 finishers out of a 10,000-strong field.
Based at the SSC in Manchester,Andrew raised £295 for CancerResearch UK, with £143 of itcoming from Stagecoachemployees. Management at the SSChave matched the employeedonations and a total of nearly£450 now will be going to a veryworthwhile cause.
Running upthe pounds
4 Summer 2003
The enthusiasm of East London Coaches driver JimKnight has helped the police and Stagecoach worktogether to promote safety on the buses.
Over the years Jim has played a vital role inencouraging children in Tower Hamlets andNewham to take part in the local police force’s‘Junior Citizens’ scheme.
To help youngsters learn more about theimportance of being safe on a bus, the schemeinvolved Jim picking groups up from school andtaking them on a tour around the vehicle. Jimwould point out problems like graffiti, torn seatsand lost keys as well as telling them what to do ifthey spot a suspicious package.
To make sure he was always up to date with thelatest health and safety standards, Jim had to attenda four-week training course held at East London’sTate and Lyle factory.
But now after 22 years with Stagecoach – the last12 as a driver for East London Coaches – Jim is toretire in August.
Tower Hamlets’ Police Constable Denise Wales,who has also worked alongside Jim in Newham,said his enthusiasm for the job has provedinvaluable.
“I would like to say a big thank you toStagecoach for providing such a dedicated and pro-fessional member of staff,” she said.
“Having worked with Jim for several years now,it never fails to amaze me that he is full ofenthusiasm for the job in hand.”
Speaking about the Junior Citizens scheme, Jimsaid that if the efforts of the people involved in thescheme were to prevent only one incidentinvolving a child, then it would be worth it.
London bids farewell to a Knight of the road
It’s not every day pupils see adouble-decker bus being pulledaround their playground.
But when one of the world’sstrongest men drops in at yourschool you’re guaranteed amemorable visit.
Big Dave visited two differentschools in East Kent as part of a roadshow designed to make youngstersmore aware of the effects of bullyingand anti-social behaviour.
During his trip to SandwichTechnology School and Ramsgate
School, the gentle giant began byshowing off his own strengths byhauling the bus 20 yards.
Then both classes sat entranced ashe talked to them about theimportance of other qualities such asshowing respect for others.
Big Dave’s visit to the school waspart of an initiative supported bypolice forces across the country andthe Kent People’s Trust, whichprovides grants to groups that areworking to improve communitysafety and reduce crime.
The show was attended byStagecoach South East’s SchoolsLiaison Officer, Tim Pomfret, whosaid he was delighted with theresponse from the children and theirteachers.
He said: “Our drivers are facedwith behavioural problems most daysacross Kent and this initiative is agreat way to get the message acrossin an entertaining way.”
So far 100,000 other schoolchildren have been visited by theroad show.
Big Dave’s powerful message to pupils
Big Dave shows school kids how to pull their weight when it comes to respecting others.
Jim has made a valuable contribution to the community.
Stagecoach in Fife has struck a new dealwith Scottish Premier side, DunfermlineAthletic.
This new collaborative venture willensure that Dunfermline’s communityprogramme team can carry ondelivering fun football coaching sessionsto under-12s in the area on a not-for-profit basis, with further concessions forFifeStyle Premier cardholders.
Karen McNeill, the Club’sCommunity Director, said: “Stagecoachwants to ensure a real communitybenefit from this partnership and we’rereally looking forward to workingclosely with it to ensure that objective.At the moment we deliver realisticallypriced, quality coaching to over 500local under-12s every week; theStagecoach deal will allow us to bothsustain and increase our range ofprogrammes, reaching a wider localaudience.”
Lisa McCloy, Marketing Manager,Stagecoach East Scotland, added:“Stagecoach is delighted to become theofficial sponsor of the Pars in thecommunity programme. As a keyprovider of public transport in FifeStagecoach looks forward to workingjointly with the club and local schools todeliver coaching sessions that willbenefit local school children.”
Coaching entersnew dimension
A striking new seaside design is to beshowcased on the side of a Stagecoachbus in Kent.
Around 36 art and design studentsfrom Thanet College were invited tocreate a new colour scheme for adouble-decker bus that would helppromote the local region.
Using the internet and libraryfacilities to research images andinformation relating to the Thanet area,the young designers put their talents tothe test.
But, as always, there can be only onewinner and Stagecoach’s CommercialDirector, Gordon Frost, and TimPomfret, Schools Liaison Officer forStagecoach South East, chose thecolourful seaside design devised by TimDay (19) and Sean Mason (17) as theirfavourite.
Gordon said: “All of the designs hadmerit but we had to take into accountthe practicality of the design and how itwould eventually be applied to thevehicle. Tim and Sean’s design, which isdifferent on each side of the bus, will bestriking when produced.”
Oh we do liketo be besidethe seaside…
Stagecoach Group has agreed anumber of sales at Coach USA asit makes excellent progress indelivering the strategy torestructure the business.
Deals have been agreed for the sale oftwo-thirds of the businesses earmarked fordisposal as part of the 12 to 18-monthprogramme announced at the end of lastyear.
The new deals involve the sale of theWest, South Central, New England and Transitdivisions of the North American business to avariety of buyers
Private merchant banking firm Kohlbergand Co has agreed terms to buy the West andSouth Central regions for $155m. Eighteenbusinesses in total are being sold, with thedeal covering 3,000 employees and around1,500 vehicles.
Coach USA’s Transit division is being soldto First Transit, a US subsidiary of First Groupplc, for $22.5m. Transit, which has around2,000 employees and 1,200 vehicles, operatesin 35 locations within the US.
Peter Pan Bus Lines, which operatesextensive intercity bus services throughoutthe North East corridor of the US, is buying
Coach’s New England operation. The $40mdeal covers five businesses and a fleet of 255buses.
Separately, small taxi operations inColorado Springs, Miami, Cincinnati, KansasCity, Long Island and Indianapolis have beensold to other operators.
Brian Souter, Stagecoach Group ChiefExecutive, said: “We have taken a significantstep forward in our restructuring of the NorthAmerican business.
“We have now completed or agreed termsfor approximately two thirds of the salesprogramme at Coach USA and I am pleasedwith the excellent progress we have made todate. We are well on track to complete therestructuring of Coach USA on time.”
Discussions are continuing with interestedparties regarding the sale of the remainingSouth East, Canada and taxi businesses withinCoach USA. Moving forward, the Group plansto focus on the North East and North Centralregions of the US.
Coach USA sell-offskeep strategy on track
A tale to tell?
If you are helping to promote safety on the busesthen we’d like to know about it. Your On Stagecontact is listed on p2.
5Summer 2003
Financial highlights• Turnover £2,077m (2002- £2,111m)
• Total operating profit* £146m (2002 - £167m)
• Profit before tax* £113m (2002 - £107m)
• £575m of exceptional write-downs from Coach USA
review resulting in a statutory loss before tax of £500m
(2002 – profit of £42m)
• Earnings per share* 6.4p; up from 6.3p
• Free cash flow up 18% to £218m
• Net debt down £215m to £560m
• Full year dividend of 2.6p (2002 – 2.6p)
* excluding goodwill amortisation and exceptional items
Business highlights• Continued profitability in all four key
operating divisions
• Good progress in restructuring Coach USA
• c. £300m of disposals announced post year-end
• Terms of new franchise at South West Trains finalised
• Improved operational performance benefiting Rail
Division
• Margin improvement at UK Bus
• Strong revenue and volume growth in New Zealand
Preliminary results for the year ended 30 April 2003
Stagecoach Group plc
6 Summer 2003
Stagecoach Group has madepositive progress this year towardsachieving its key strategicobjectives despite challengingissues within the transport sectorand a difficult economicenvironment.
Across the Group, we are seeing strong cashgeneration from each of our four key operatingdivisions and all are trading profitably. In theUK, our bus division has had a successful yearand is delivering increased operating marginswith solid revenue and passenger volumegrowth. We have agreed terms with theStrategic Rail Authority (“SRA”) for a new three-year franchise at South West Trains, which isone of the UK’s largest rail franchises. We areawaiting final approval of this new franchiseagreement from the Government.Restructuring of our Coach USA division isprogressing well. Earlier this month, wecompleted the disposal of our Citybus businessin Hong Kong, while our New Zealand busbusiness continues to deliver strong growth.
The Group’s strong cash flow generation,coupled with the favourable movement inexchange rates, has allowed us to reduce debtfor the long-term benefit of the business. Netdebt reduced by £214.6m in the year ended 30April 2003, from £774.6m to £560.0m.Subsequent to the year-end we haveannounced disposals with a gross considerationof approximately £300m. Of these proceeds,approximately £20m relates to deferred consid-eration and the remainder will initially be usedto reduce Group debt.
Turnover for the yearended 30 April 2003 was£2,076.6m (2002 -£2,111.4m). Total operatingprofit before goodwill amor-tisation and exceptionalitems was £146.4m (2002 -£166.6m). Earnings per shareon an equivalent basis wereup at 6.4p (2002 - 6.3p).
The Board of Directors isrecommending that the totaldividend for the year is 2.6pper share (2002 – 2.6p).This comprises the interim dividend of 0.8p(2002 - 1.3p) and a proposed final dividend of1.8p per share (2002 - 1.3p). The Board hasfirm confidence in the future prospects for theGroup and, based on continued strong andstable cash flows and profits within thebusiness, we will look to increase the dividendeach year.
Our two key priorities in recent monthshave been the restructuring of our Coach USAoperations following a comprehensive businessreview and finalising the new South West Trainsfranchise. Focused management action on bothof these issues will deliver greater stability andcertainty.
At Coach USA we remain on course todeliver on our key restructuring objectiveswithin the 12 to 18 month timetable we set outin December 2002 and this will produce asmaller but nevertheless substantial and morerobust business.
We believe the financial and commercialterms we have agreed with the SRA for the newfranchise at South West Trains will deliver agood and predictable return for our sharehold-ers.
Virgin Rail Group (in which we have a 49%interest) is continuing to work with the SRAwith a view to negotiating new long-termcommercial arrangements for both the WestCoast and CrossCountry franchises. Bothfranchises are presently receiving SRA fundingon the basis of a one year budget set by theSRA for the period to February 2004. We remainconfident that new franchise terms can beagreed that will secure shareholder value forStagecoach.
Our UK Bus operations are producingrevenue and passenger volume growth, most
notably where we work closely with forward-looking local authorities. We have been partic-ularly successful in the London market. We arealso pleased that the Government has takenforward our “Kick Start” proposals for targetedfunding to support the introduction of newservices and help reinvigorate the UK Busnetwork.
In the Overseas Bus division, performanceat our New Zealand businesses, where we areseeing strong growth, continues to be very sat-isfactory. Citybus, our Hong Kong busoperation, has been an excellent investment forthe Group since 1999. However, the Boardreceived an approach for the business and feltit was appropriate to review the strategic
options for StagecoachGroup in the region. In viewof the limited opportunitiesto develop significantlyelsewhere in other PacificRim countries and the long-term prospects for thebusiness in Hong Kong, webelieve the offer was a goodone and that selling thebusiness at this time was inthe best interests of share-holders.
We have a clear strategyfor the Group and are on
schedule with our sales programme andrestructuring at Coach USA. The sale of Citybushas put the Group in a strong financial position,further de-risking the Group’s portfolio and willallow management to focus on developing ourUK bus and rail businesses, a smaller but morerobust North American business and oursuccessful New Zealand operations. The Groupcontinues to be a leading internationaltransport company with a strong portfolio ofcash generative businesses.
Following the business review in NorthAmerica, I was delighted to announce sixmonths ago that Brian Souter had taken up theposition of Chief Executive on a permanentbasis. His energy and entrepreneurial visionhave been the driving force behind the Groupand the considerable work he has done inrestructuring our US operations is laying firmfoundations for a stronger North Americanbusiness.
I was happy to accept the invitation, inDecember 2002, to continue as Chairman of theBoard. We have been working closely torefocus the company and I am confidentStagecoach Group has a dedicated seniormanagement team and a committed Board thatwill ensure the Group continues to thrive anddeliver shareholder value.
Robert SpeirsChairman
CHAIRMAN’S STATEMENT
CHIEF EXECUTIVE’S OPERATING REVIEWManagement has been clearlyfocused on the twin priorities ofrestructuring Coach USA andsecuring the new franchise atSouth West Trains. I have been par-ticularly pleased at the progresswe have made and this will givegreater certainty to shareholders.
We are seeing steady performance benefitsacross the Group as a result of our concentra-tion on operationally led management. Ibelieve this has reinvigorated the entrepre-neurial approach of management and we arewell placed to deliver growth in ouroperations, despite the worldwide economicslowdown.
Overall financial resultsThe financial results for the year ended 30April 2003 reflect the strong underlying cashflow generation of the Group and thecontinued trading profitability of our four keyoperating divisions. Turnover for the year was£2,076.6m (2002 - £2,111.4m). Total operatingprofit before goodwill amortisation andexceptional items was £146.4m (2002 -£166.6m). Adjusted earnings per share (beforegoodwill amortisation and exceptional items)increased from 6.3 pence to 6.4 pence.
Coach USAI am pleased to report that we remain oncourse to restructure our Coach USA divisionand to meet our strategic aims for the businesswithin the 12 to 18 month timetable weoutlined in December 2002. We have alreadyannounced the disposals of Coach USA’sTransit division, New England, West, andSouth Central regions and a number of its taxibusinesses. Together, the gross considerationfor these amounts to over US$220m.
We intend to retain the North East andNorth Central regions, which togetheraccounted for around one-third of CoachUSA’s turnover in the year ended 30 April2003. We are developing the businesses withinthe Coach USA portfolio that perform well andhave predictable revenue streams, as well asreducing our exposure to charter and leisure-related businesses. In addition, we have suc-cessfully retained key management and furtherreduced our corporate and regional overheadbase. Trading at Coach USA, as we predicted,remains challenging and we have not seen anymajor improvement in the tradingenvironment. Nevertheless, Coach USAremains cash generative and profitable. We
‘The Group continues tobe a leading interna-
tional transportcompany with a strong
portfolio of cashgenerative businesses.’
Robert Speirs
Robert Speirs
Brian Souter
7Summer 2003
sidiaries in the year was up 2.7% at £413.6m(2002: £402.8m). Operating profit was £38.2m(2002: £31.0m), representing an operatingmargin of 9.2% (2002: 7.7%). This includesliquidated damages of £8.5m in relation tolate delivery and reliability of new Class 458trains. Rail profits are stated after the costs ofbidding for new franchises.
Passenger volumes at South West Trainsincreased by 2.1%, or 0.9% after excluding theperiods affected by industrial action in theprior year.
Our share of Virgin Rail Group’s turnoverfor the year amounted to £276.1m (2002 -£261.2m) and our share of operating profitsbefore exceptional items was £7.2m (2002 -£10.8m). Passenger volumes for the year are4.7% above the prior year.
have many strong performing businesses in theresidual Coach USA portfolio and we arecontinuing to redeploy existing assets tomaximise asset utilisation and to eliminateunnecessary capital expenditure.
Coach USA’s turnover for the year was£603.0m, compared to £682.3m in the previousyear. Operating profit was £14.0m*, comparedto £38.4m in 2002, representing a reduction inoperating margin from 5.6% to 2.3%. Thereduction in operating margin reflects a fall of0.4% in like for like revenues in our coach andbus operations, increased insurance costs and asignificant fall in taxicab utilisation and sales.Action is continuing to maintain strict controlson our cost base and improve operatingefficiency.
RailWe have now agreed financial and commercialterms with the SRA for a new three-yearfranchise at South West Trains. The deal, whichhas been recommended to the Department forTransport and the Treasury by the SRA Board,is currently awaiting final approval. Togetherwith the current one-year extension this wouldresult in a franchise for the period untilFebruary 2007. This will cement our leadingposition within the UK rail market andcombines the right balance of risk and returnfor our shareholders.
Our Rail division has delivered a strongoperating profit for the year. At South WestTrains, our concentration on driving upoperational performance has resulted insignificant improvements and we areprogressing well with the planned introductionof our new £1bn Desiro train fleet. At VirginRail Group, the business is benefiting from thefocus on service delivery and significantinvestment in new trains. The replacement ofthe entire CrossCountry fleet has beencompleted with the introduction of new VirginVoyagers, while the first of the new state-of-the-art Pendolino trains are also in service.
Network infrastructure difficulties remain aconcern, however, and we have implemented arange of measures to mitigate the effects on ouroperation as well as working closely withNetwork Rail and the Strategic Rail Authority.
Turnover for our wholly-owned rail sub-
UK BusOur UK Bus division, the traditional core ofthe Group, is performing well. We arebenefiting from revenue and passengergrowth in provincial towns where we areworking in partnership with forward-lookinglocal authorities. We have been particularlysuccessful in the London market, where wehave retained and won a number of tenders.New tenders and the operation of additionalvehicles on behalf of Transport for Londonhave added £14.6m in revenue in the yearended 30 April 2003. Passenger volumes inLondon are up 8.8% and we see furtheropportunities for growth following the intro-duction of congestion charging earlier thisyear.
We are taking an industry lead ingenerating new ideas and believe our “KickStart” proposal, which is now being takenforward by the UK Government, can benefitcommunities across the country. Theproposal is that the Government sets asidefunds, which are used to give short–termimpetus for the introduction of new serviceswith the aim that such services wouldbecome commercially viable within threeyears from their commencement. It candeliver more comprehensive bus services,reduced road congestion, better value forthe taxpayer, with important environmentaland social inclusion benefits. As well asbidding for Government funding in thisarea, we will continue with our own “KickStart” programme of investment in buses forroutes identified as having organic growthpotential and we are also looking at thedevelopment of a number of new productsand ideas targeted for growth in the nexttwelve months.
Turnover in our UK Bus division hasincreased 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 increasesin insurance costs and labour costs,including an increase in pension costs. Theoperating profit figure is stated after thefinancing element of vehicle operatingleases, which amounted to £0.5m. Thisrepresents an operating margin of 11.2%(2002: 11.0%) and reflects the benefits froma wide range of local initiatives to growrevenue, despite a continuing fall in the costof car ownership. Across the UK, we haveinvested in new buses with a total capitalvalue of £40.7m during the year to developour on-the-road product. Total passengervolumes across our UK Bus business haveincreased by 3.2%.
8 Summer 2003
Overseas BusIn New Zealand, where we are thebiggest bus operator, our operationshave delivered further strong growth.We continue to work in closepartnership with national and localgovernment to improve bus services,investing heavily in our operation.“Kick Start” pump-priming fundinghas helped enhance services on keycorridors and bus passenger growthin Auckland has continued to bestrong. In addition, we remainactively interested in running thesuburban rail networks in bothWellington and Auckland.
Under our ownership since 1999,our Hong Kong Citybus operation hasproduced strong organic growth inpassenger volumes and a significantreduction in operating costs.Following an approach for thebusiness, we reviewed the strategicoptions for Stagecoach Group in theregion. It was our view that therewere limited opportunities to developsignificantly elsewhere in otherPacific Rim countries and the long-term prospects for the business inHong Kong were uncertain. Anumber of factors were assessed incoming to a decision, including thefuture economic climate in Hong
Kong, the growing levels ofregulation and the inability to growprofit without very significantinvestment or critical mass synergies.While the outbreak of Severe AcuteRespiratory Syndrome (“SARS”) earlierthis year continues to impact the prof-itability of the Hong Kong business,
our assessment of the sale was basedon a long-term view of the profitabil-ity and capital requirements of thebusiness and not the immediatetrading conditions. The market forfranchised bus operations iscompetitive and the purchaser
already had an interest in a significantfranchised bus operation. Theproposed combination will benefitfrom synergies and economies ofscale and this will give a solidplatform for the further investmentthat is required in the Hong Kongfranchised bus market. On that basis,we believe the sale of Citybus was inthe best interests of the business andStagecoach shareholders, and it willallow Stagecoach management tocontinue to deliver our strategy as aleading international transportprovider.
Turnover for the year in OverseasBus was £183.7m, compared to£194.7m in the previous year.Operating profit was £30.3m,compared to £33.4m in the previousyear. This represents an operatingmargin of 16.5% (2002 – 17.2%). Thereduction in operating profit reflectsthe disposals of operations inAustralia and Portugal, movements inforeign exchange rates applied intranslating overseas profits to sterlingand the impact of SARS and a sluggisheconomy on our Hong Kongoperations.
The results for Overseas Businclude turnover in respect of Citybusof £132.3m (2002: £148.6m) andoperating profit of £19.1m (2002:£25.2m).
Joint ventures andassociatesOur share of joint ventures’ andassociates’ operating profits (beforegoodwill amortisation andexceptional items) was £12.6mcompared to £18.5m in the prior year.The reduction reflects reduced prof-itability at Virgin Rail Group, areduction in certain minimum incomeundertakings from joint ventures atRoad King and movements in foreignexchange rates applied in translatingoverseas profits to sterling. Inaddition to Virgin Rail Group (profit£7.2m; 2002 - £10.8m), the resultsinclude our share ofthetrainline.com’s operating losseswhich was £4.3m (2002 - £4.4m), ourshare of profits in Road King of£10.5m (2002 - £12.9m) and our shareof operating losses of £0.8m (2002 -£0.8m) from our other joint venturesand associates.
Current tradingWhile still early in the new financialyear, the Group has started the yearwell and is trading in line with ourexpectations.
Our PeopleI am delighted with the contributionour people across the globe havemade in meeting the challenges of thepast year and I would like to thankthem and our customers for theircontinued support. I am certain wecan deliver better services, morevalue to shareholders, and continuedsecurity for our employees.
Brian SouterChief Executive
* References to the operating profitof a particular business unit refer tooperating profit before restructuringcosts, goodwill amortisation andexceptional items.
‘I am delighted withthe contribution ourpeople across theglobe have made in
meeting thechallenges of the
past year’
Brian Souter
9Summer 2003
It definitely wasn’t a stroll in the park asemployees at Stagecoach Manchesterfaced a battle with the elements whentaking part in a charity walk for cysticfibrosis.
Princess Road depot allocators FredCampion and Pete Marsland, drivers DaveRobertson and Will Nuttall and inspectorDanny Pike faced strong winds anddriving rain throughout the 26-mile ‘BogulStroll’.
But the event, organised by UMISTUniversity in Manchester, was a hugesuccess with £950 being raised for thecharity.
And despite the last nine miles of themarathon-length walk being the mostdifficult, each member of the five-manteam said they would do it all over again.
Pictured are Fred Campion, Pete Marsland, DaveRobertson and Will Nuttall. Fellow walker DannyPike was unable to make the photocall.
Marathon effort to aid charity
Bus-mad Simon is Stagecoach’sbiggest fan
Devon is fast becoming a driving force intraining.
With a new driver test pass rate ofaround 150 in the present year and theinduction of new drivers already holdingPCV licences, the Stagecoach DevonTraining School needed sufficientfacilities to operate efficiently.
So the old offices in Exeter bus stationhave been refurbished to create a new,fully-equipped driving school.
Now under the leadership of TrainingManager Colin Kneeshaw, who is alsothe delegated DSA Examiner, a team ofseven Training Officers operate fourtraining vehicles and run two classroomsas well as the NVQ process forStagecoach Devon.
The training officers have in excess of150 years PCV driving experiencebetween them, and hold 35 variousindustry qualifications and certificates.
The team is also running a newrefresher programme for existing staff.This offers an update to staff on customerservice skills, product knowledge, sellingof tickets and acts as a forum to feedback useful information.
Mark Whittle, Marketing Manager,said: “The introduction of ongoing stafftraining is a big step forward; we have ahighly qualified committed team whoneeded a more professional environmentin which to operate.
“All the staff involved worked veryhard to create what I think is a modern
professional environment. “As an industry, hundreds of drivers
are trained to obtain their PCV licenceeach year. I believe that the way forwardis to offer our staff better customerservice and product training, which willenable them to give the customer a betterservice.
“I think that the new driving schooland refresher course will go a long wayto achieving this.”
Training centre proves a driving force
On Stage has trackeddown a serious contenderfor Stagecoach’s biggestfan – a 12-year-oldschoolboy from SouthWales.
Simon Ingham, from Rogerstone,Newport, has had an interest in thebus and coach industry for as longas his family can remember.
He started off taking a keeninterest in the former Crosskeysdepot and the buses and coachesthat ran on routes that passed hishome.
Simon soon got to know thecharacteristics of each vehicle and
his grandmother started a Saturdayafternoon treat of taking him on adifferent bus route every week, ahabit he still follows.
Stagecoach drivers have alsogiven Simon pieces of old uniform,such as ties, to add to his collectionof memorabilia.
Now Simon has gone one stepfurther – he has persuaded hisfather, Neil, to turn the front of hisbedroom wardrobe into a replica ofa Stagecoach single-decker bus!
Neil, a design and technologyteacher and deputy headmaster atthe local secondary school, hasgiven the wardrobe lights, an indexplate, and even a revolvingdestination board.
Dennis Parfitt, Simon’s uncle,said: “He has an amazingknowledge of local bus firms andStagecoach in particular. I think hemust be one of Stagecoach’s biggestfans.”
Simon also collects model busesand coaches and has built up acollection of more than 60 vehicles,around half of which areStagecoach buses.
TOP OF THE CLASS: (left to right) Gary Chapman, Paul Bishopp, Tony Howland, Mark Etherington,Mark Jarman, Tim Davies, Nick Hake and Training Manager Colin Kneeshaw.
A tale to tell?
If you’ve a story on improvingcustomer service then we’d like toknow about it. Your On Stage contactis listed on p2.
A tale to tell?
Is Simon our biggest fan? If youknow someone to challenge forthat title then we would like tohear about them. Your On Stagecontact is listed on p2.
Simon (right) with his buscollection and (below) his
Stagecoach-adorned bedroom.
A new guide has beenlaunched to one of themost beautiful bus ridesin Britain.
Route 555, betweenWindermere andKeswick, takes in lakes,mountains and forestsalong its 19-mile stretch.
The leaflet featurescolour photos andinformation about manyoutstanding sights,including Thirlmere,Castle Rock, Rydal Waterand Wythburn Church . Italso gives details ofattractions on the route,such as Brockhole, RydalMount and Dove Cottage.
Colin Nicholson,Stagecoach North West’sMarketing Manager, said:“Working in partnershipwith outdoor writer MarkRichards ‘From A to B toSee’ is part of our newinitiative aimed atproviding a more
Travel is as easy as ‘A to B to See’
The new guide to some of Britain’s best scenery.
enjoyable travel experience and to encouragemore visitors to the Lake District to explore thisbeautiful area by bus.”
10 Summer 2003
Stagecoach Devon recently heldits long service awards’ dinner atthe Langstone Cliff Hotel, DawlishWarren.
Among the recipients wasNorman Bolt of Exmouth Depotwho clocked up an astonishing 40years on the road.
He began as a conductor in1963 and later drove coaches forDevon General.
After a health scare in ’95,when doctors thought his careerwas over, he bounced back withStagecoach Devon where heworked until his retiral.
The full list of recipients is:-40 years – M. Prowse (Exeter),
N. Bolt (Exmouth).35 years – R. Clements
(Exmouth), R. Coppen (Torquay),R. Merryfield (Exeter), D. Conway(Sidmouth, retired).
30 years – M Roper (Exeter),A. Moloey (Torquay), R. Gardiner(Exeter), R. Coker (Sidmouth),I.Kneeshaw (Exeter), B. Dance(Exmouth).
25 years – B. Tipping(Torquay), D. Smith (Exeter), R.Hayward (Exeter), R. Malyon(Ottery St Mary).
Stagecoach East Midlands recentlyheld its annual long service awards.
The event, at the Hassop HallHotel, near Bakewell, Derbyshire,recognised 27 employees who hadattained 815 years of service betweenthem.
The awards were presented by UKBus Managing Director Les Warnefordand the full list of recipients was:
40 years – Edward Longmate(Chesterfield), Ernest Grunnill(Mansfield), Malcolm Parker(Mansfield), Michael Storey
In Hutt Valley ministers become driversand drivers can become…Ministers!
Down Under servicereally does rev up
Extending a bus route in NewZealand is quite literally a religiousexperience.
Nine of the 100-plus drivers atCityline Hutt Valley are ordainedministers.
And when the Stagecoach Flyerroute in Wellington was extended inMay, three of them presided over ablessing ceremony of the two new 51-seat air-conditioned buses that havebeen added to the service.
The VIP guest at the event wasanother minister – Paul Swain, theMinister of Transport, who also justhappens to be a former bus driver!
“We have a really close-knit teamof drivers in the Hutt Valley, manywith very close links to thecommunity,” said Warwick Williams,Manager Cityline Hutt Valley.
“Discovering that so many of themare leaders in their relative churchesand community groups initiallysurprised me. However, I havequickly learnt to appreciate how thiscontributes so positively to the goodworking atmosphere we have.
“I am especially proud of thegroup of drivers dedicated to
operating the Stagecoach Flyer, whichconsistently receives the highestcustomer service satisfaction marks inthe regular regional bus servicesurveys.”
The extension of the StagecoachFlyer also takes this high-profileservice into the home constituency ofthe Minister of Transport.
Mr Swain also spoke at the launchceremony and praised Stagecoach forits work, both in the local communityand in the whole region.
And, having been a bus drivermuch earlier in his life, he has a greataffinity with the industry and the trialsand tribulations of driving ‘in service’.
The Stagecoach Flyer started inNovember 1999. Designed as afrequent and fast connection betweenLower Hutt and the airport, viaWellington City, it has, so far, carriedmore than 1,000,000 passengers.
Midlandshonourloyalservice
Centuries of loyal service – the long-service award recipients with Les Warneford, East Midlands Managing Director Paul Lynch andOperations Director Richard Kay.
(Chesterfield), John Booth (Worksop).35 years – John Halbery
(Chesterfield), Eric Marsh(Chesterfield), Anthony Myers(Worksop), John Longbottom (Hull).
30 years – Keith Margarson(Grimsby), William Gane (Grimsby),
Stephen Methven (Mansfield), JohnFrench (Chesterfield), John Bacon(Chesterfield).
25 years – Paul Stead (Grimsby),Robert Birks (Chesterfield), EricBroom (Chesterfield), GrahamHemingray (Chesterfield), Stephen
Kirkwood (Chesterfield), NeilHemsley (Chesterfield), IanHopkinson (Worksop), Jack Fletcher(Chesterfield), Jamie Waddell(Worksop), William Baker (Hull),Brian Johnson (Hull), Trevor Heeson(Hull), Brian Tribe (Hull).
Devon’s creamof the crop
West of Scotland driver ShawLindsay is tops with a team ofStateside visitors.
Kilmarnock-based Shawdrove the Masters CommissionGroup visiting from America ontheir tour of Scotland in Mayand his skill drew much praise.
Described by the group as an“amazing driver” for hispatience, punctuality and easymanner, he was crowned thenumber one bus driver in theworld for making the trip soenjoyable and for going aboveand beyond the call of duty.
Bus tour partyfull of praise
Bowled overStaff from a number of Ayrshiredepots recently took on the mightof Ardrossan Outdoor BowlingClub.
The challenge match wasorganised by the club president ofthe bowling club and StagecoachWest Scotland driver Willie Hay.Despite the valiant efforts of theStagecoach team, the moreseasoned campaigners took thehonours.
MORNING SERVICE: Reverends and Flyer bus drivers (left to right) Lance Keevey, Maurice Kapene, Tom Patuwai.
Kind-hearted staff from Busways inNewcastle have made four generous charitydonations which should help brighten-upthe lives of local children fighting seriousillnesses.
An impressive total of £14,000 wasraised through the emergency aid fund anddonated to local hospitals and a children’shospice.
The fund was originally set up for staffmembers in need and also included staff
from the Tyne & Wear Metro, but has sincebeen replaced by alternative schemes.
However, donations to the scheme havecontinued over the past few years –building up a substantial pot of cash whichhas now been split between four differentcharitable causes. The emergency aid fundhas now been wound up.
The ‘chin up’ appeal, which supports alocal independent children’s hospice,received £5,000, while £3,000 went to
Newcastle General Hospital’s ‘bubbleappeal’ for children needing bone marrowreplacement.
Newcastle’s Freeman Hospital received£3,000, while the Royal Victoria Infirmarywas given a donation of £3,000 worth ofelectrical equipment including DVD players,televisions and PlayStations for the children.Microwaves, toasters and kettles for parentsto use while staying with their children inthe hospital were also part of the package.
Staff’s cash drive helps sick kidsStaff and patients atNewcastle General
Hospital weredelighted to receive
their cheque for£3,000 from Metro
driver Steve Mitchell(left), Busways driver
Angie McGill (secondfrom right) and Tony
Youmans (right),Busways driver andemergency aid fundcommittee member.
A tale to tell?
Do you have a ‘strange but true’story for us ? Your On Stage contactis listed on p2.
11Summer 2003
Coach USA drivers havecelebrated a total of 900years of staying safe behindthe wheel.
Fifty eight of the drivers from the NERegion’s Northern and SouthernDistricts were invited to attend twospecial safety awards ceremonies inNew Jersey to mark their excellentsafety records.
The longest was set by StephanMajofsky, who has notched up anastounding 31 accident-free years ofdriving for Suburban Coach.
“I am delighted and honoured toreceive this recognition,” said Stephan.“I have been a driver for more than 30years and, with the roads getting busier,I think it is great that so many of ushave such safe long-term records.
Hot on his heels was Robert Teele,who has enjoyed 30 years of drivingsafely.
Covering 53 million miles a year, alldrivers – from Rockland Coach,Community Coach, International Bus,Olympia Trails, Red & Tan, LeisureLine, Suburban and Cape Transit – havecompleted at least 10 years of accident-free service with the average length oftime being 16 years.
Roger Bowker, Senior President forCoach USA NE Region, said: “We arevery proud of our 58 drivers and theirtremendous safety records. Many of ourdrivers have over 25 years of safedriving and we believe their achieve-ments deserve to be recognised andcelebrated.”
Careful Coach clocks upnine centuries of safety
Roy’s big dayIn our last edition (Issue 50),we featured a story aboutFolkestone driver Roy Carter,who has retired after morethan 40 years’ service on busesin the area. We would like topoint out that the party tomark the event was organisedby Roy and his wife, Patricia,and not by staff andmanagement as stated in ourarticle. We would like toapologise to Roy and Patricia,and again give them our bestwishes for the future.
Representatives of Rockland Coach, Community Coach, International Bus and Leisure Line who won safety awards for the NE Region Northern District. INSET : Suburban Coachdrivers Stephan Majofsky (left) and Robert Teele who, between them, have a 60-year safety record.
PA Katie Loudon and the rest ofher fellow curlers missed out on amedal at the World Championshipsin Canada – but they are alreadyplanning their next push for aplace on the winners’ podium.
Katie, who works with GroupFinance at Stagecoach Group’s HQin Perth, was part of a four-strongteam, led by her sister Edith,which represented Scotland at theWorld Championships in Winnipegin April.
The rink – which also includedKaren Addison and Lynn Cameron
– missed out on a top spot in theevent eventually won by the USA.
But the team is hoping to buildon its experience of major champi-onships with a fresh bid for medalsand is already preparing for theEuropean Championships inCourmayeur, Italy, in December.
“Winnipeg was a hotbed ofcurling and the whole WorldChampionship experience wasfantastic,” said Katie.
“We had great support fromeveryone, including our sponsorsDrambuie and Stagecoach, and we
set off with high expectations.Unfortunately, we were unable toregain the consistency we showedearlier in the season.
“Our focus now is to use theexperiences and knowledgegained from winning and losing toprepare for the Europeans in Italylater this year.”
All four have competed atEuropean, World Junior and WorldChampionship level with Edith andKatie also taking part in the 1998Winter Olympics in Japan wherethey finished fourth.
New medal bid for curler Katie
COOL CUSTOMER: Katie Loudon in action.
Stagecoach’s Inter-Depot Golfcompetition got off to a swinging startwith 146 players from 27 differentdepots turning up to tee-off.
This year’s tournament took centrestage at the Rutland County Golf Clubnear Peterborough.
Organiser Mick Butcher, from
Peterborough depot, said the day washugely successful with colleagues fromacross the country competing for thecoveted Inter-Depot Shield.
But, as always, there can only beone winner and this year thechampions were the Exeter team –Captain S Easter, J. Jarman, L. Frost andM. Tomkins.
The Bromley team – S. Jardine, D.Soper, P. McPhund and M. Cole – werepresented with runners-up medals.
Exeter’s M. Tomkins also made hismark and was presented with the BestIndividual Trophy, while the runner-up prize went to D. Wildgoose fromGlossop depot.
Thanking his fellow eventorganisers, Dave Murphy, DaveLongman and Mark Downer, as well asSteve Lowe, Director of Golf at RutlandCounty, Mick said he is now planningto make next year’s event even biggerand better.
Exeter marks its spot on Inter-Depot Shield
The triumphant Exeter team showsoff its trophies.
12 Summer 2003
Stagecoach is to expand web-based sales of itsinnovative student Unirider ticket later this year.
Student Victoria Bell has justthe ticket for relaxing from ayear of study – a dreamholiday.
The Manchester Universitystudent bought her annualStudent Unirider ticket inSeptember from theStagecoach website and wasentered into the prize draw.
From over 5,000 Uniridercustomers, Victoria’s name waspicked out of the hat as thelucky winner of £500 worth ofholiday vouchers for theholiday of her choice.
Unirider offers studentsunlimited travel on Stagecoachand Magic Buses in GreaterManchester for a term or anacademic year.
Victoria, who lives inWhalley Range and is studyingEnglish Language, plans tospend her vouchers on aholiday in Tunisia.
Students onlineand on the buses!Unirider helps nurturefuture passenger loyalty
Victoria (left) receives her holiday vouchers from Marketing ManagerKaren Best.
Already 15% of the innovativetickets are sold via the web as thecompany continues to exploit thehuge potential of the internet.
Now it is set to build on itssuccessful student marketing drive inManchester by expanding web-basedsales of the product to a host of newlocations.
A new improved e-commerce sitewill be used to target studentsreturning for the start of the new termin the autumn.
The campaign will be rolled outto Newcastle, Warwick, Lancaster,and Aberdeen, with further locationsplanned later in the year.
Paul Bunting, BusinessDevelopment Director at StagecoachUK Bus, said: “Internet-basedservices are becoming an increas-ingly important channel in meetingthe needs of our customers and, inManchester, some 15% of our totalstudent sales are now via ourstagecoachbus.com website.
“We believe there is a significantpotential to get similar results fromthe student market in other keycentres across the UK.
“If students see the quality andgood value of our product at thisstage in their lives, we will have amuch greater chance of them seeingthe bus as an attractive option later intheir careers.”
Stagecoach’s Unirider campaignin Manchester, targeted at the crucial40,000-strong student market, hasachieved growth of 45% in two years.There has also been an encouragingshift towards annual ticket sales thatgenerate increased loyalty amongcustomers.
A comprehensive marketingcampaign is being developed tosupport the launch of the improvede-commerce site.
The original Manchester Uniridercampaign picked up the UK BusIndustry Award for Marketing at theend of 2002.
Unirider –passport toparadise
The future is now for Virgin’s new state-of-the art Pendolino trains.
Passengers travelling on routes betweenLondon, Manchester and the West Midlandshave been able to experience the revolu-tionary ‘Train of the Future’ since a regularservice was launched in June.
Prior to this only a limited service wasavailable but now 20 Pendolino trains taketo the tracks each weekday on these routes.
It now takes just 3hr 28mins to travelfrom Manchester Piccadilly to LondonEuston, including four stops along the wayat Stockport, Wilmslow, Stafford and MiltonKeynes, and just 2hr 24mins fromWolverhampton to London Euston,including stops at Birmingham New Street,Birmingham International, Rugby and MiltonKeynes.
And more Pendolinos are to beintroduced on other services – includingweekends – from July.
The introduction of 53 Pendolino trains,each costing a cool £11 million, is thanks toa massive investment by Virgin Trains.
Virgin Trains Chief Executive Chris Greensaid: “This is the next stage in the introduc-tion of our state-of-the-art Pendolino Trains.Over the coming months we will be puttingeven more on the London-Manchester andLondon-West Midlands route working bothpeak and off-peak services.”
And it won’t be long before passengerscan also hop aboard tilting trains on theWest Coast route.
Drivers are currently being trained to
Fast forward to the future Although twisted spires are a commonenough sight in Chesterfield, you don’treally expect to see aliens in the town.
But when Stagecoach East Midlandslaunched its new Chesterfield network inApril, alien-spotting was the only gamein town.
As part of the biggest reorganisationof services the town had seen sincederegulation, a greatly improvednetwork of services was introduced.
Services were simplified andimproved to provide easy to understandand easy to use routes.
Knowing that all aliens are naturaltravel experts, some friendly specimenswere co-opted to help launchChesterfield’s network of the future.
Along with selected old and newbuses, these intergalactic friends helpedspread the word.
Anyone spotting an ‘alien’ wasrewarded with a free travel voucher,which gave customers, old and new, achance to sample Stagecoach’s newservices.
To add to the fun, passengerspresenting themselves in alien costumealso travelled free.
Early indications show that the newservices are proving popular withcustomers.
Whilst Stagecoach can’t yet offer tripsto Jupiter or Saturn, the more down toearth needs of customers in Chesterfieldare being met better than ever before.
Aliens travelfree inChesterfield
drive Pendolinos on the 209-milestretch between London and Preston.A full passenger service is expectedto be in operation by the end of thisyear.
Saturday night and Sundaymorning high-speed test runs willcontinue to be conducted between
Rugby and Nuneaton until mid-Julyand testing of trains hasrecommenced in the Merseysidearea.
And, following successful test runsat 140 mph, the new Pendolino390002 Red Revolution is set to stepup a gear with tests at 145 mph.
Jon Down and DesHughes were in for asurprise when theyvisited a school to seepupils honoured forimproving theirconduct on schoolbuses.
The StagecoachSouth East driversdropped in at St.Edmund’s School,Dover, where theyoungsters they hadworked with werereceiving certificatesunder the locally-runSafe Travel to Schoolscheme.
But the sterlingwork done by Jon andDes was alsorecognised by theorganisers with asurprise cheque andcertificate presenta-tion!
Tim Pomfret,Stagecoach’s SchoolsLiaison Officer forKent and Hastings,said he was delightedwith the recognitiongiven to the goodrapport betweendrivers and pupils.
“ S t a g e c o a c htransports more than1,300 school childrenin the region everyday so the importanceof good behaviour andthe safe use of bustransport are crucial,”he added.
Driversscoopsurpriseaward
Train services havereturned to Chandler’sFord in Hampshire – 34years after the lastpassengers used thestation.
Hampshire CountyCouncil, the StrategicRail Authority, SouthWest Trains andNetwork Rail haveworked in partnership todevelop a new rail linkand station building.Work on the stationbuilding is progressingwell and should becompleted in October.
South West TrainsCommercial DirectorRufus Boyd said: “Thereopening of the stationat Chandler’s Fordrepresents a step changein train journey opportu-nities and providesHampshire railpassengers with vitalconnections at keylocations to the rest ofthe railway network.”
Stationback inbusiness
