Getlink (EU:GET) shares dipped 0.2% on Thursday after the Channel Tunnel operator formally contested a proposed rise in its UK Business Rates—an increase that could materially affect its future cost base and investment strategy.
The company said it had received notice from the UK Valuation Office Agency outlining a substantial rate increase as part of the standard three-year review. Without adjustments to transitional relief, the change would lift its costs by €15 million in 2026 and push total Business Rates up by roughly 200%—adding €26 million over the next three years.
Getlink warned it would halt certain planned UK investments and exhaust all available channels to oppose the increase if it goes ahead. The Financial Times noted that the company typically passes on around half of its business-rates obligations to rail operators.
Based on current estimates, the proposed hike would represent about 1% of Getlink’s projected FY26 EBITDA and roughly 2% of its expected profit before tax, assuming a 50% pass-through rate.
RBC analysts commented: “We rate Getlink Sector Perform with a €17 price target. We expect an improvement rather than inflection in Eurotunnel’s performance. Our FY26E forecasts are ahead of consensus, with Eleclink positioned for a return to top-line growth. On our forecasts, FCF yields in FY26 will be relatively low (within the subsector) given elevated capex.”
There is precedent for initial proposals being softened during final determinations, and Getlink’s decision to publicly push back suggests management sees a realistic opportunity to secure a less severe increase.
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