NatEx execs take pay sacrifice
National Express Group executives are taking a pay deferral and sacrifice for the duration of the coronavirus outbreak.
Other actions taken across the Group include stopping all non-critical cashflow. All acquisition and capital expenditure programmes are on hold. All meetings and events and non-essential travel have been cancelled and all external spend is subject to increased scrutiny and reduced approval limits.
The company is also discussing with relevant authorities how idle vehicles and drivers can be used to support local health and welfare services.
The combination of its management actions and contract structures means it is still anticipating a small, but positive, cashflow in the coming months.
Currently, in the UK its commercial bus revenue (which accounts for 70% of the business’ revenue) has so far seen a decline of around 20%. Concession income represents 19% of the business’ revenue. So far it has seen around a 40% decline in OAP passenger numbers. However, for now at least, it continues to be paid by the concession reimbursement as normal from the West Midlands authority.
Its UK coach is experiencing a significant decline in passenger numbers. But these declines will be mitigated through significant network reductions, with UK coach reverting to a network similar to its Christmas Day service. The company says its UK coach business is further protected given around 60% of services are delivered (and the associated costs incurred) by third party operators.