Weak market conditions and a difficult competitive environment during 2003 have led to lower Shuttle yields and revenues despite higher truck volumes. Operating revenue was 5% lower than 2002 at £566 million. Operating costs were held stable. The operating profit was £170 million. Interest charges, which averaged 4.9%, were £7 million higher compared to the 2002 figure which benefited from a £17 million non-recurring reduction. The underlying loss for 2003 was £148 million. A £115 million exceptional profit was generated from financial operations. The net result was a £34 million loss before an impairment charge of £1.3 billion arising from the application of IAS36 (equivalent to FRS11) at 31 December 2003.
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Previous PageEurotunnel plc Group Summary* Consolidated Accounts
*The full Annual Accounts are available on the internet site www.eurotunnel.com or by request to the Shareholders Information Centre: 08457 697 397.
Consolidated balance sheet as at 31 December 2003
| 2003 | 2002 | |
| £'000 | £'000 | |
| FIXED ASSETS | ||
|---|---|---|
| Tangible assets | 3,624,816 | 4,326,607 |
| Investment in Eurotunnel Services G.I.E. (ESGIE) | 1 | 1 |
| 3,624,817 | 4,326,608 | |
| CURRENT ASSETS | ||
| Stocks | 6,265 | 10,722 |
| Debtors | ||
| Debtors due after more than one year | 526,340 | 628,476 |
| Debtors due within one year | 89,793 | 70,204 |
| 616,133 | 698,680 | |
| Investments | 146,451 | 195,668 |
| Cash at bank and in hand | 11,741 | 15,544 |
| 780,590 | 920,614 | |
| CREDITORS - Amounts falling due within one year | (265,113) | (425,099) |
| Net current assets | 515,477 | 495,515 |
| Total assets less current liabilities | 4,140,294 | 4,822,123 |
| CREDITORS - Amounts falling due | ||
| after more than one year | (3,584,212) | (3,742,183) |
| PROVISIONS FOR LIABILITIES AND CHARGES | (47,525) | (41,442) |
| Net assets | 508,557 | 1,038,498 |
| CAPITAL AND RESERVES | ||
| Called up share capital | 25,461 | 23,625 |
| Share premium account | 1,140,765 | 1,015,568 |
| Profit and loss account | (657,669) | (695) |
| Equity shareholders' funds | 508,557 | 1,038,498 |
Profit and loss account for the year ended 31 December 2003
| 2003 | 2002 | |
| £'000 | £'000 | |
| Turnover | 288,641 | 288,556 |
|---|---|---|
| Other operating income | 22,726 | 25,327 |
| Staff costs | (78,793) | (79,117) |
| Depreciation and amounts written off tangible fixed assets |
(61,618) | (59,161) |
| Exceptional impairment of fixed assets | (650,000) | - |
| Exceptional write-offs | (602) | (24,809) |
| (712,220) | (83,970) | |
| Other aoperating charges | (85,004) | (75,418) |
| Operating (loss) / profit | (564,650) | 75,378 |
| (Loss) / profit on sale of assets and subsidiary undertakings |
25,789 | 47,112 |
| (Loss) / profit on ordinary activities before interest and taxation |
(538,861) | 122,490 |
| Interest receivable and similar income | 51,833 | 17,922 |
| Interest payable and similar charges | (215,559) | (184,724) |
| Exceptional profit on financial operations | 45,613 | 221,582 |
| (Loss) / profit on ordinary activities before and after taxation and for the financial year |
(656,974) | 177,270 |
Notes
1. This summary financial statement on Eurotunnel Group Summary Combined Accounts page, which is a summary of information extracted from the Report and Accounts of Eurotunnel plc which were approved by the Board of Directors on 8 February 2004, and was signed on its behalf by Richard Shirrefs does not contain sufficient information to allow for as full an understanding of the results of the Group and the state of affairs of the Group or of the Company, as would be provided by the full Annual Report and Accounts. For further information, the full annual accounts which include policies and arrangements concerning directors' remuneration in the directors' remuneration report, the Auditors' report on those accounts and the Directors' Report should be consulted. Shareholders have the right to request a copy of the full Report and Accounts free of charge. If you wish to receive copies of the full Report this year and in future years, please write to Eurotunnel's registrars, Computershare Services plc, PO Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 7ZF.
2. Summary Directors' Report Eurotunnel's activities, a review of its operations, the progress it has made in the financial year under review and likely future developments are summarised in this document. The financial review is set out on the Financial Results page.
Aggregate Directors' emoluments for the year were £815,012 (2002 : £852,413) before pensions contributions. FRS 14 ("Earnings per Share") applies to companies whose shares are publicly traded.
As the EPLC shares cannot be publicly traded in themselves but only as part of a Unit, the disclosure requirements only apply to the combined earnings per Unit, which is disclosed on the Financial Results page.
3. Directors
The Directors of Eurotunnel at the date of this report are listed on the Corporate Governance page of the Summary Annual Report.
4. Auditors
The Auditors' Report on the Accounts of the Company was not qualified, but contained two matters of
emphasis, one in relation to going concern and one in relation to recoverable amounts on fixed assets.
The Auditors' Report did not contain a statement under either section 237(2) of the Companies Act 1985
(accounting records or returns inadequate or accounts not agreeing with records or returns) or section
237(3) (failure to obtain necessary information and explanations).
5. Statement of the Auditors to the Shareholders of Eurotunnel plc pursuant to section 251 of the Companies Act 1985. We have examined the summary financial statement set out on this page.
Respective responsibilities of Directors and Auditors
The directors are responsible for preparing the summarised annual report in accordance with applicable United Kingdom law. Our responsibility is to report to you our opinion on the consistency of the summary financial statement within the summarised annual report with the full annual accounts, the directors' report and the directors' remuneration report, and its compliance with the relevant requirements of section 251 of the Companies Act 1985 and the regulations made thereunder. We also read the other information contained in the summarised annual report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summary financial statement. This statement is made solely to the company's members, as a body, in accordance with section 251 of the Companies Act 1985. Our work has been undertaken so that we might state to the company's members those matters we are required to state to them in such a statement and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our work, for this report, or for the opinions we have formed.
Basis of opinion
We conducted our examination in accordance with Bulletin 1999/6 "The auditor's statement on the summary financial statement" issued by the Auditing Practices Board for use in the United Kingdom. Our report on the Group's full annual accounts describes the basis of our audit opinion on those accounts.
Opinion
In our opinion the summary financial statement is consistent with the full accounts, the directors' report and the directors' remuneration report of Eurotunnel plc for the year ended 31 December 2003 and complies with the applicable requirements of section 251 of the Companies Act 1985 and the regulations made thereunder.
KPMG Audit PlcChartered Accountants
Registered Auditor
London, 8 February 2004