Jarvis: press won't damage investment

Jarvis' management team says negative media coverage of its results for the year to 31 March will not influence the group's investors.

Newspaper headlines included: "Rail crash firm doubles profit," "Rail group in fatal crash probe sees profits rise 85%," and "Fury as Potters Bar firm's profits leap by 85%." The Times declared: "Jarvis chief will not resign over derailment."

But Jarvis' management continues to say that no fault will be found with its management systems at Potters Bar.

"Our management systems are not in question," said a spokesman.

"We're the biggest [rail] maintenance contractor because we're the best. We're able to demonstrate that this is fundamentally a strong business, which has consistently delivered profit. All we can do is keep making that point [to investors]."

When announcing the results, chief executive Paris Moayedi extended the group's sympathies to those affected by the derailment tragedy.

He went on to announce a 54% increase in the rail business turnover for 2001/02 of £469m, compared with £303.3m the previous year. Operating profit increased 58% to £32.4m.

The roads division doubled operating profit to £10.7m on a turnover up slightly to £152.3m.

The forward order book (including preferred bidder projects) for infrastructure services stands at £1.5bn, of which £400m is in the current financial year.

Accommodation services - which provide integrated financing, construction management and long-term facilities management - grew turnover 18% to £278.6m, producing an improved operating profit of £17.1m.

The forward order book (including preferred bidder projects) now stands at £3.5bn, of which £300m is in the current financial year.

Overall the group delivered a 31% hike in turnover to £949.4m and pre-tax profit nearly doubled to £45.8m.

Last year Jarvis stated a pre-tax profit of £30.1m, but since then accounting policy of pre-contract costs has changed. This has led to Jarvis restating its 2000/01 figure as £24.8m.

The new policy requires that only pre-contract costs incurred from the date when the asset recognition criteria are met should be recognised as an asset. Costs incurred before this date are recognised as expenses.