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Jarvis predicts £5m operating loss

17 Feb 10 Jarvis expects to make a £5m operating loss when it announces its full year results to 31 March, due chiefly to a disappointing performance by its rail and plant operations.

Jarvis expects to make a £5m operating loss when it announces its full year results to 31 March, due chiefly to a disappointing performance by its rail and plant operations.

A statement by chairman Stephen Norris said: “The company has been impacted by economic conditions generally and in particular the very considerable reduction in available volumes of rail and plant work to which we have referred in previous announcements.

“Trading conditions have continued to be difficult during the period, specifically with the timing of contract awards which now means that full year performance is likely to be below previous management expectations.”

Net debt at 16 February 2010 was down to £12.6m, primarily due to because the firm’s working capital facility is linked to rail and plant volumes which have reduced, said Norris.

Additional restructuring costs of approximately £3m have been incurred during the period.

However, Norris said Jarvis had a healthier bid pipeline for next year, and has been awarded £55m of work on the Chiltern Railway's Evergreen 3 contract, in partnership with BAM Nuttall.

Jarvis Accommodation Services performed in line with management expectations.
 

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