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Jarvis goes into administration

25 Mar 10 Jarvis has gone into administration after its secured lenders refused to extend further support to the company, which would have enabled it to continue trading as a going concern.

Jarvis has gone into administration after its secured lenders refused to extend further support to the company, which would have enabled it to continue trading as a going concern.

The rail infrastructure specialist announced in February that it had been hit by a substantial reduction in volumes of rail and plant work, and was finding trading conditions “difficult”.

It said it needed more support from lenders and key customers, including Network Rail.

However, in a statement today, Jarvis said: "Following negotiations with the company's secured lenders, it has today become clear that sufficient support will not be extended to the company to enable it to continue trading as a going concern.”

"As a consequence, the directors now have no option but to take steps, together with the company's secured lenders, to place the company, and certain of its subsidiaries, into administration, and to request that trading in its shares be suspended with immediate effect."

Jarvis said last month that it expected to make an operating loss of £5 for the year ending 31 March 2010, and that it had incurred restructuring costs of about £3m between October 2009 and February 2010.

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