Debt-laden Eurotunnel Group narrowed its full-year underlying loss by almost one third to €144 million as the company reached its target of cash break-even.
However, having posted a €681 million exceptional gain on debt refinancing, the company warned its debt levels remain too high and said prospects for growth are limited in the year ahead.
The operator posted a 3 per cent rise in full-year operating profit to €326 million; net profit including exceptional items was €508 million, compared with a loss of €188 million for the same time last year.
The company's aim is to maintain cash break-even in 2003, which will require "continued growth in our operating cash flow to cover higher interest charges than in 2002," said chief executive Mr Richard Shirrefs
Eurotunnel's debts are still too high and it has not yet delivered returns to our shareholders, he said. "We will continue to improve the performance of our core shuttle business. We will further reduce our costs wherever possible".
Mr Shirrefs said a marked slowdown in the economy led to "volumes in the truck and passenger markets below expectations" during 2002, while the core shuttle business experienced solid growth.