Tube Lines gives Jarvis an early boost

Jarvis is reaping the financial rewards for having taken a place in Tube Lines, the consortium that succeeded in winning one of the three London Underground PPP contracts.

Financial results for the group (12 months to 31 March) published this morning show that Jarvis' £32m bid costs have already been repaid. In addition, there has been a maiden pre-tax contribution (in the three months to the end of March) of £3.2m from the venture, a higher figure than Jarvis planned for.

And the future prospects get rosier - Jarvis now expects its share of pre-tax profits from Tube Lines in the current year to run to £13m, well ahead of earlier estimates of £8m.

Jarvis' latest results show a turnover of £1.2bn, representing an increase of 28%, delivering a stronger pre-tax profit of £63m (Jarvis made £46m in the previous year).

The secured future workload has a total value of £10bn while Jarvis is currently bidding for further work with a total value of £14.5bn.