# Trainline Significant fall in industry passenger numbers over past month

- Link: https://www.directorstalkinterviews.com/trainline-significant-fall-in-industry-passenger-numbers-over-past-month/412811672
- Published: 2020-04-09T07:33:30+01:00
- Author: Amilia Stone

**Trainline plc** (LON:TRN), the leading independent rail and coach travel platform
selling rail and coach tickets to millions of customers worldwide, today provided
an update on actions the Group is taking in response to the COVID-19 pandemic.

**Supporting our people and our customers**

Trainline’s priorities during the COVID-19 pandemic continue to be the safety and
wellbeing of our people and supporting our customers to make changes to their travel
plans and process refunds.  We have swiftly transitioned all of our teams to work
from home with minimal disruption to our business. In addition, we have managed 
unprecedented levels of inbound customer service requests and improved customer 
self-serve functionality – introducing simple, automated change and refund processes
on our app and website – while also working with the rail industry to relax refund
terms and conditions.

**Mitigating actions to reduce our cost base**

Since our IPO in June 2019, Trainline has delivered strong growth in net ticket 
sales, revenue and EBITDA while significantly reducing net debt. 

Given a significant fall in industry passenger numbers over the past month as a 
result of the COVID-19 lockdown, we have taken quick and decisive measures to reduce
operating costs and cash outflows.  

The Group’s mitigating actions include effectively pausing marketing and other discretionary
spend, introducing a recruitment freeze, deferring bonus payments and pay reviews
for staff for FY 2020, and revising payment terms with some of our suppliers.  

In addition, in recognition of the uncertainty generated by the current environment,
the following has been agreed:

·      The Chief Executive has decided to take a 50% salary reduction for the foreseeable
future;

·      The Board of Directors and Management Team will take a voluntary 20% reduction
in their Board fees and salaries respectively for the foreseeable future;

·      The Executive Directors and Management team will defer their annual bonus
for FY 2020;

·      We plan to furlough certain teams under the Government’s Coronavirus Job 
Retention Scheme (CJRS). 

We will maintain our investment in the Group’s strategic priorities to drive long
term growth and create value for our customers and shareholders, including the development
of innovative new products and services for our customers.

As a result of the actions across the Group, Trainline’s cash outflow from operating
costs and capital expenditure has reduced to c.£8-9 million per month.

As the impact of COVID-19 remains uncertain, Trainline will continue to monitor 
developments closely and adapt our response accordingly.

**Secure liquidity position, even in an extended downturn period**

Given the Group’s monthly cash outflow from operating costs and capital expenditure
of c.£8-9 million (see above), we remain confident we can operate through an extended
downturn period if required, without any further cost mitigation.

We forecast that Trainline’s liquidity headroom will be c.£150 million by the end
of May 2020. By this time, the Group expects to have fully completed the working
capital outflow arising from settling pre-existing bookings to train and coach operators
as well as processing refunds to customers. 

> **Clare Gilmartin, Chief Executive of Trainline said:**
> “Our people and our customers have always been our key priority. Over the past
> few weeks, we have worked extremely hard on our customers’ behalf to help them
> through what has been unprecedented levels of travel disruption.  I would like
> to thank my team for their commitment and support, and our customers for their
> loyalty and patience throughout this period.
> “Trainline is a resilient business and we believe that our prudent action now 
> strengthens us for the long term, positioning us well to return to growth once
> travel restrictions lift.”

**Full year results**

Trainline will publish preliminary results for the financial year 2020 (the twelve-
month period running from 1^(st) March 2019 to 29^(th) February 2020) on Thursday
7^(th) May 2020. 

The preliminary results will be published at 07.00am (UK time) through the regulatory
news service (RNS) and on the Company’s website (investors.thetrainline.com).

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