2005 and 2006 results on a going concern basis
2005: Net result a major loss
- Impairment £1.75 billion
- Negative equity of £1.3 billion
2006: Excellent operating results
- Revenue up, to £568 million (+5%), with revenues from Shuttle activity up by +7%
- Excellent profitability from activities (operating margin / revenue), up four points to 59%
- Strong improvement in trading profit: +42% to £220 million
- Net loss due to the impact of financial charges: -£143 million
A Safeguard Plan to avoid bankruptcy
2006 was a year devoted to restructuring of the company’s operations and to negotiations with the creditors, initially to find a consensual agreement and subsequently, from 2 August onwards, in the context of a Safeguard Procedure. The Safeguard Plan put forward by the company was approved by the Paris Commercial Court on 15 January 2007.
The Joint Board of Eurotunnel approved the accounts for 2005 and 2006, on the basis of the Safeguard Plan, at its meeting, chaired by Jacques Gounon, on 6 March 2007.
The Auditors and Commissaires aux Comptes certified the accounts with matters of emphasis, notably regarding going concern. This depends upon the full implementation of the Safeguard Plan and, particularly, upon the success of the Exchange Tender Offer (ETO). If this was to fail, Eurotunnel would probably be put in liquidation.
Get the full results in the attached document below.