LONDON 23 Jul (ANA) - Car and lorry traffic through the Channel tunnel fell during the first half of the year as Brexit uncertainty took its toll, operator Getlink says.

 

The company also says the "hesitancy of certain customers" was affecting forward bookings, though maintained it was confident in targets for the key summer period.

 

Getlink reported a slight rise in pre-tax profits for the six-month period but has abandoned hopes that full-year earnings will be buoyed by a smooth Brexit, as the prospects of a deal fade.

 

The group, which includes French private rail freight operator Europorte as well as Eurotunnel, reported a 2% rise in revenues to € 523m (£ 470m) and 3% rise in pre-tax profits to € 37m (£ 33m), thanks to lower financing costs.

 

Car traffic using Eurotunnel fell 2% in a market "affected by the uncertainties surrounding Brexit" while the number of trucks carried fell by 4%.

 

"The delay in the implementation of Brexit due to political uncertainties in Britain seems to be affecting economic activity," Getlink said.

 

The company reported a boost to activity early in the year thanks to stockpiling ahead of the original deadline for Britain to leave the EU, but there was a "sharp slowdown" in the second quarter.

 

Business was also hit by a French customs officers' strike.

 

However there was record traffic for Eurostar, the separate high speed passenger rail service which pays for use of the tunnel.

 

Meanwhile, Getlink said it spent € 3m (£ 2.7m) on Brexit preparations and said during the period it had completed changes to road layout at terminals and the setting up of new control areas for truck and passenger shuttle services, as well as digital projects for the new border control regime.

 

Chief executive Jacques Gounon said: "In the first half of the year, despite the jolts resulting from the political uncertainties of Brexit the group has once again demonstrated the resilience of its business model.

 

"The group remains confident in its ability to manage the next stages of Brexit."

 

Getlink had been targeting underlying earnings of € 575m (£ 517m) for the year in the event of a deal being reached and € 560m (£ 504m) in the case of a "no deal".

 

But it said that "successive failures" to reach an agreement meant the first scenario was "no longer applicable".

 

Instead it was aiming for the second target but that this was "still dependent on the states putting in place efficient border control procedures which do not result in operational disruptions".(ANA)

FA/ANA/23 July 2019--------