Stagecoach Group PLC Confirmation of new East Midlands trains franchise (6947P)
February 12 2019 - 2:00AM
UK Regulatory
TIDMSGC
RNS Number : 6947P
Stagecoach Group PLC
12 February 2019
CONFIRMATION OF NEW EAST MIDLANDS TRAINS FRANCHISE
Stagecoach Group plc ("Stagecoach") is pleased to confirm that
its subsidiary, East Midlands Trains Limited, has agreed a new
short-term rail franchise with the Department for Transport
("DfT"). The new franchise will commence on 3 March 2019 and run
until at least 18 August 2019. The DfT has the discretion to extend
the franchise by up to 24 weeks on terms that have been agreed.
Under the new agreement, customers and communities will continue
to benefit from a range of improvements, including:
-- Supporting the delivery of the GBP1.5bn Midland Main Line
upgrade to improve capacity and reduce journey times.
-- Continuation of the investment programme to improve stations
and trains, which includes accessibility improvements at stations
and on trains.
-- Roll out of smart ticketing in March 2019 as part of the wider programme on National Rail.
In addition, East Midlands Trains will be focused on ensuring
readiness for the new franchise, including helping to put in place
plans for extra seats from 2020.
Under the terms of the new contract, revenue risk will sit
primarily with the DfT. East Midlands Trains expects to earn a
modest profit under the contract and a profit sharing arrangement
with the DfT will apply.
East Midlands Trains remains the UK's most punctual long
distance railway, a position it has held for the last ten years.
Last year saw East Midlands Trains work with Network Rail to
successfully deliver a GBP200m re-signalling and upgrade project at
Derby. Over the last 11 years, customers have benefited from
millions of pounds of investment to improve services, whilst
taxpayers have benefited from substantial premium payments to
Government.
For further information, please contact:
Stagecoach Group plc
www.stagecoachgroup.com
Investors and analysts
Ross Paterson, Finance Director 01738 442111
Bruce Dingwall, Group Financial Controller 01738 442111
Media
Steven Stewart, Director of Corporate Communications 07764 7746800
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END
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