Trainline warns of credit facility covenant breach

Trainline PLC mentioned on Thursday that there’s a threat of covenant breach referring to its million pound ($454.6 million) revolving credit score facility as a consequence of Covid-19 restrictions, and mentioned its loss for the primary half of fiscal 2021 narrowed because it booked decrease prices.

The U.Okay. firm, which runs a digital platform for purchasing rail and bus tickets, mentioned that the monetary covenant on the power has been waived till August 2021. “As at November 5, 2020 the group has not sought to acquire an extra covenant waiver or renegotiated the underlying covenant requirement with the lending syndicate, as presently a breach just isn’t thought of the most certainly end result,” the corporate mentioned.

For the six months ended Aug. 31, Trainline reported a pretax lack of GBP38.6 million, in contrast with a lack of GBP87.5 million for the primary half of fiscal 2020.

Income was GBP31 million in contrast with GBP129 million for the year-prior interval. The corporate mentioned this was because of the vital impact of lockdowns and containment measures throughout Europe and the U.Okay. on rail passenger numbers through the interval.

Internet ticket gross sales for the interval have been GBP358 million in contrast with GBP1.84 billion the 12 months earlier than.

“We see no change to the long-term structural tailwinds for Trainline,” Chief Govt Clare Gilmartin mentioned. “Rail is a big market with vital authorities funding deliberate over the following decade, rising environmental consciousness of its advantages in comparison with air or automobile, and appreciable runway for practice tickets to shift on-line and to cell.”

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