Yahoo Finance £3m bonanza for former Trainline chief as shares soar
The former chief executive of Trainline has been rewarded for her faith in the ticketing app after rail bosses struck a crucial deal with the company over the commissions it charges.
The value of Clare Gilmartin’s stake rose by more than £3m as shares soared by almost a quarter on Thursday.
After a review by rail industry chiefs, Trainline agreed to reduce commission rates by 0.5pc to 4.5pc. But with industry costs falling by 0.25pc, the actual reduction would be just 0.25pc.
Crucially, however, the deal removed the threat of Britain’s new state body undercutting the fees that Trainline charges.
Great British Railways (GBR), which will bring the operation of tracks and services under one body for the first time in decades, plans to roll out its own ticketing website and app.
Last month analysts from City stockbroker Peel Hunt met with Shaun McCabe, Trainline’s finance chief.
James Lockyer of Peel Hunt said: “[Trainline] sought assurances GBR won’t be subsidised by the taxpayer. Trainline believes it will be very hard for GBR to be profitable if the commission rate is cut from 5pc.”
Ms Gilmartin, who previously held senior roles at eBay, stepped down as Trainline chief executive in October 2020, just months after cashing in shares worth £3m.
She sold £16m of stock when the company, previously backed by private equity firm KKR, floated in 2019.
After attracting a £2bn valuation on its stock market debut, investors have deserted Trainline amid fears that others could replicate its website and app.
A Government announcement last May of GBR’s formation came as a major blow, sending shares down by more than a fifth. They have since struggled to regain lost ground.
Shares rose 46p to 244p on Thursday, valuing the company at almost £1.2bn.
Jody Ford, the former boss of Moonpig, took over from Ms Gilmartin. Trainline is chaired by City grandee, Brian McBride, who was last month nominated to be president of the CBI.
Mr Ford said that Thursday’s agreement was “a step forward in providing greater certainty to Trainline”.
