TELLINGS.GOLDEN MILLER

The information on this website has been provided to fulfil the requirements of AIM Rule 26.

This website was last updated on 16th October 2007.

DESCRIPTION OF BUSINESS

Overview
Tellings Golden Miller Group Plc is a coach and bus operator providing scheduled and private hire services to a broad customer bases. Operations are throughout the UK from bases in London, Surrey, Hampshire, East Anglia, County Durham and the Tyne and Wear. In early 2007, the Group acquired an engineering base in the London Heathrow Airport.

Coach Operations
Our coach operations which represent 45% of out business are based at Heathrow, Harlesden in West London, Haverhill, Cambridge and Annfield Plain, County Durham.
A total of 76 coaches were operated at 31 December 2006. Of these, 29 are based in the Greater London area and, after new coach deliveries in early 2007, all but 4 of these will meet London’s low emission zone requirements scheduled to be implemented in June 2008, reflecting the Group’s attention to high environmental standards.
We continue to review the shape of our fleet to meet demand and to prepare for the introduction of low emission zone standards in 2008. Overall, 78% of our 2007 coach fleet will be powered by EURO 3 or EURO 4 engines which comply with these low emission standards, putting the Group in a strong position to meet the challenges that these changes present.

Bus Operations
Our Bus division represents 25% of our business and connects communities in East Anglia, centred around Colchester and Cambridge, and also in the Tyne and Wear. Our recent acquisition of certain bus operations from Wiltax Buses Limited extends this range to Surrey Our bus division operates a fleet of over 100 buses of which more than 50% are low emission compliant.
We operate both commercial and tendered services, including schools contracts, on behalf of local authorities. We also operate contracts on behalf of private and public sector corporations including rail replacement work.

National Express
The Group provides coaches and crew to National Express on services operated by TGM Coaches, Burtons and Classic from our Portsmouth, Cambridge and Newcastle depots. These services link major towns with London and other cities. In particular, we operate services between Portsmouth and London, Portsmouth, Bradford and Paignton, East Anglia and London, and Newcastle, Cambridge and London.
Our National Express fleet comprises 35 coaches of which 74% are powered by either EURO 3 or EURO 4 engines and this division represents 20% of our business.
The Group enjoyed significant expansion of this business during 2006 with three new North East England routes being added. Turnover amounted to £5.0m (2005: £4.1m) an increase of 22%.

Engineering
The Group’s engineering operations are centred on OFJ Ground Services Limited. The Group purchased 75% of the issued share capital of OFJ Ground Services Limited on 14 February 2007
Ground Services is a high quality engineering facility at Heathrow Airport and is involved in the provision of engineering maintenance and repair services to airline ground equipment including over 120 vehicles owned by the OFJ Connections. Ground Services has also full responsibility for the engineering and maintenance of all the Group’s London and Portsmouth based vehicles which consist of over 60 vehicles.
The Ground Services facility is also well equipped to be the new Headquarters for the Company and an operating centre for its London Coaching division.
It is expected that Engineering will represent about 10% of our annual business.

COUNTRY OF INCORPORATION
TGM Group Plc is a public limited company that is incorporated, domiciled and has its registered office in England, which is its main country of operation.

SHARE CAPITAL
The company’s shares are traded on the AIM market of the London Stock Exchange
The Company has 22,937,499 ordinary shares of 7 pence in issue.
There are no restrictions on the company’s shares
71% of the Company’s shares are not in public hands.

The significant shareholders of the Company are detailed below (all > 3%):

DIRECTORS AND RESPONSIBILITIES

Stephen R Telling - Chairman and Chief Executive
Age: 59
Stephen established the Company in 1984 and remains the principal shareholder,. Stephen is the key individual driving the business forward.
He involves himself heavily in the day-to-day running of the Group, authorising and involving himself with all tenders, coach contracts and fixed asset vehicle requirements.
Stephen is a former president of the Confederation of Passenger Transport UK.

Basil J Taylor – Group Financial Director
Age: 60
Basil joined Tellings Golden Miller in November 2004 and the Board in August 2005. He is a chartered accountant and holds a Masters in the Science of Management from Boston University USA. He held several directorships and senior financial management positions in the finance industry before joining Tellings Golden Miller.

Richard S Telling – Group Engineering Director / Managing Director OFJ Ground Services Ltd
Age: 31
Richard, being the son of Stephen, joined the Group from Guildford College as a trainee engineer. He has undertaken and passed a management course in vehicle engineering.
His responsibilities include control and management of the workshop, he is has also been appointed as Managing Director of OFJ Ground Services Limited, in which the Group acquired a 75% holding on 14 February 2007. At this time Richard was also appointed Group Engineering Director. Richard has an advisory role on new vehicle model and specification requirements.

Julian Peddle - Non- Executive Director
Age: 53
Julian established himself in the industry with Stevensons of Uttoxeter and has interests in a number of independent bus and coach operators. He has a long career involvement with the bus and coach industry and has worked with Stephen Telling for many years.

Stephen Thomson - Non-Executive director
Age: 49
Stephen was appointed as non-executive director of Tellings at the time of the Company's admission to the Alternative Investment Market (AIM) in June 2003. He currently holds a number of other board positions and is also involved in charitable work as trustee and school governor.

Board Committees

    Audit Committee
    This committee is chaired by Stephen Thomson. Julian Peddle is also a member

    Remuneration Committee
    This committee is chaired by Stephen Thomson. Julian Peddle is also a member.

    AIM Compliance Committee
    This committee is chaired by Julian Peddle. Stephen Thomson is also a member.

NOTIFICATIONS
This link provides access to the notification made by the Company in the last 12 months

http://www.tellingsgoldenmiller.co.uk/OFJ Acquisition

http://www.investegate.co.uk/Index.aspx?company=TGM