Shares of Trainline PLC (LON: TRN) fell over 10% today after the firm announced that its current chief executive Clare Gilmartin will be stepping down from the board beginning next year.
In her place, Trainline will promote its chief operating officer Jody Ford. He joined the company only last month from Photobox Group, where he acted as CEO.
“The decision to step down next year is a personal one; after seven years at the helm the time has come for me to spend more time with my family,” Gilmartin said.
Gilmartin will remain at Trainline in the capacity of a senior advisor after she steps down from the board in February.
This news comes just a day after Deutsche Bank started coverage of Trainline with a ‘Buy' rating and 414p price objective.
“A 90% overnight decline in passenger numbers has truly tested its business model. And the resulting shift towards working from home provides a structural headwind for long-term passenger numbers, at least over the next 12 months.”
“This is partly backed by financial imperative – the government is incentivised to encourage a return to rail (as in France), having only recently taken on full ownership of losses. It has also made commitments to reduced carbon emissions, which should drive policy shifts to encourage a migration in passenger volumes to rail,” the bank’s analysts wrote in a note.
Trainline share price tumbled over 10% to hit levels below the 300p mark for the first time since April.
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