Getlink predicts major growth courtesy of Channel Tunnel and ElecLink


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Getlink, the company formerly known as Groupe Eurotunnel, has forecast major earnings growth over the next four years, despite the challenges of Brexit.

At an investor day in London today, it presented its view on how markets will evolve, its outlook for growth and its long-term strategy.

And it predicts an EBITA (earnings before interest, tax and amortisation) of in excess of €735m (£644m) an increase of 38% by 2022.

Getlink predict continued growth in cross-Channel traffic
Getlink predict continued growth in cross-Channel traffic

Free cash flow - a measure of a company's financial performance, calculated as operating cash flow minus capital expenditures - is expected to increase by around 70% to some €400m (£350m).

That is set to equate to a €0.05 per share increase in terms of annual dividend.

Getlink chairman and CEO, Jacques Gounon, said: “Getlink is a genuine investment for the future. It is technology led, innovative, profitable and generates value from the length of the concession. We are committed to 'total shareholder return' as our priority."

The Channel Tunnel will provide the route for ElecLink's £500m power cable connecting Kent to France
The Channel Tunnel will provide the route for ElecLink's £500m power cable connecting Kent to France

The group has the right to operate the cross-Channel rail link until 2086. An extension was agreed between the French and British governments in 1997 to extend the concession from 2052 with both governments taking 59% of all profits generated.

In addition, its wholly-owned ElecLink will be inaugurated in 2020, which will use the Channel Tunnel for electricity supplies flowing between France and England - linking to the National Grid at Sellindge, between Ashford and Hythe.

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