Channel Tunnel operator's Brexit warning will resonate with all transport firms

Channel tunnel operator Getlink warned that its earnings will be hit by Brexit — regardless of whether Britain seals a deal with the European Union or it crashes out of the bloc without a deal.

On a call with analysts discussing its 2018 earnings results, Getlink CEO Jacques Gounon said “we are being very cautious though we are confident in the commitment of Britain and France to quickly set up effective border control procedures without any operational discontinuity. We nevertheless expect disruptions during the second quarter.”

On Thursday, the group posted record profits for 2018 and beat analyst expectations by revealing that earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 9% to €569m (£494m, $644m), while revenue jumped 5% to €1.079bn. However, it warned that 2019 EBITDA is likely to fall to €560m in the event of a no-deal Brexit.

Getlink is a firm that faces major risks when it comes to Brexit. Its business is expansive and includes the Eurostar high-speed trains between Paris, Brussels and London. It also operates shuttle trains that include freight trucks.

According to its filings, the group’s transportation accounted for 26% of trade between Britain and the EU, and carried 21 million passengers, 17 million trucks, and 2.7 million cars.

Getlink’s Gounon said that the group had so far spent €13m in Brexit preparations. The company also signed a deal this month to equip automatic face recognition technology for terminals in France and Britain in a bid to speed up and secure border crossing, regardless of a Brexit deal.

READ MORE: UK government being sued by Eurotunnel over no-deal Brexit ferries contract