Stagecoach directors take 50% pay cut as passengers slump
Bus passengers are down 40%
Transport group Stagecoach said directors will take a 50% cut in salary as figures show paying bus passenger numbers have slumped by 40% because of the coronavirus.
Directors are sacrificing their salaries and fees for a period of time and will not receive any bonuses for 2019/20 or any pay increase for 2020/21. Staff recruitment has been frozen.
It has £290m of available cash and undrawn and committed bank facilities to underpin the continuity of the business but it no longer expects to achieve its previous expectations.
“Whilst we continue to monitor the situation closely, it is too early to predict reliably the effect on profit. We have taken decisive action, and have contractual protections in place, to help the business withstand this more challenging period,” said the Perth company in a trading update.
“Our ongoing engagement with the authorities includes discussing how that revenue will be protected. Our recent daily data suggests that concessionary patronage is now down around 50% as a consequence of the outbreak of COVID-19.
“Commercial revenue from customers directly purchasing tickets for travel ordinarily accounts for approximately 63% of regional bus revenue. Our recent daily data suggests that commercial patronage is now down around 40% as a consequence of the COVID-19 situation.
The board considers it unlikely that it will propose any further dividends in respect of the year ending 2 May 2020.