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Train Wi-Fi supplier Nomad Digital narrows losses despite pandemic disruption

by Markel
in Tech
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Train Wi-Fi supplier Nomad Digital narrows losses despite pandemic disruption

North East train Wi-Fi provider Nomad Digital says it is working with operators to entice passengers back to rail travel following the disruption caused by the pandemic.

Fresh company accounts show Nomad Digital Limited – one of several companies within the wider Alstom group – narrowed operating losses from £3.6m to £2.3m in the year to the end of March 2021, while turnover increased from £29.5m to £32.5m.

The 20-year-old business, which runs offices near Newcastle Quayside, said that while some customers had delayed investment decision making, it continued to see opportunities arise.

Read more: Dynamo merges with Sunderland Software City and plans increased activity

Nomad’s key customers are franchised train operators running services in the UK and national rail companies overseas. It said this meant that despite low passenger volumes caused by the pandemic, its exposure to insolvency risk was relatively low.

Writing in a report accompanying the accounts, Nomad director Anthony Fowler, said: “Operators continue to review their operations in the current environment.

“While seeing some delay in investment decisions, the business continues to see opportunities arise. The company has continued to see activity supporting operators in offering services to attract passenger back to the networks, and also in providing information back to the operators to enhance fleet management and deliver operating efficiency.”

Nomad is reliant on its French parent – Alstom – from which it draws on a £10.25m loan facility, repayable at the end of March 2023. It has also borrowed £13.1m via intercompany loan arrangements with Alstom’s treasury function.

The 130-strong firm – which describes itself as the global market leader in the provision of Wi-Fi on trains – saw turnover grow most substantially in North America, where it increased from £2.6m to £5.1m.

In Europe, its largest market, turnover grew from £21m to £23.6m however it fell in the UK from £5.9m to £3.7m.

Mr Fowler also said: “The company will continue to develop and enhance its solution offerings, as it seeks to penetrate new and growing markets, as well as maintain its significant market leadership in well-established territories.

“It continues to work with its sister companies in Alstom and with its Nomad Tech Joint Venture to enhance the
offering to the market.”

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