Yahoo Finance Trainline shares plunge after Shapps leaves it in the dark on rail reform
Trainline has been left in limbo by ministers’ failure to implement sweeping reforms to Britain’s railways.
Jody Ford, its chief executive, said the FTSE 250 firm was waiting for “clarity” from the Government, which unveiled the biggest shake-up of the railways since privatisation nearly six months ago.
The City took a dim view of Trainline being left in the dark. Shares fell by a tenth to 290p, wiping more than £150m off the company’s valuation.
After a series of delays, in part because of the pandemic, Grant Shapps unveiled plans for a new public sector body called Great British Railways in May. Franchising would be culled with plans for a ticketing app that rivalled Trainline.
Trainline shares plunged on that announcement. Although the stock has since regained some lost ground, concerns have persisted about its future role on Britain’s railways.
Mr Ford admitted on Wednesday that the plans “will likely have significant impact” on its division that runs websites on behalf of rail operators.
“This process is taking time,” he added. “We await clarity on their proposals and their implications for third party retailers.”
Trainline generated £1bn of net ticket sales in the first six months of its financial year.
Although considerably higher than sales in the first half of last year, Trainline has, and continues to, feel the effects of the pandemic.
Commuting numbers are still at just 45pc of pre-pandemic levels, although leisure travel - primarily at the weekend - have returned to 90pc of pre-crisis levels.
Trainline’s pre-tax losses were £8.4m, down from the £38.6m in the previous year.
