Jarvis' last call?

Jarvis must move quickly to secure its future, according to City analysts and industry pundits.
Later this month the troubled group is due to reveal the results of its strategic review alongside the delayed announcement of its results for the year to 31 March.
These results will include at least £156m of write-offs, £115m of that from the Accommodation Services division (see last Friday's story on www.contractjournal.com for the full breakdown). However, the review cannot come soon enough.
Arbuthnot Securities analyst Stephen Rawlinson said: "Jarvis appears unlikely to be able to get to the end of July in its current form. Suppliers will be demanding that their invoices are paid immediately and that will cause a drain on cash, and many will walk away because demand for their services is high and they do not need to work for a cash-strapped Jarvis."
He added: "The banks have to decide whether it is best to sell some businesses quickly while there is still some value remaining. Selling TubeLines is possible, but very complex."
However, one stockbroker said the write-offs raise questions about the true value of Jarvis' businesses. "Coming out of rail maintenance should have helped the debt situation [not led to a £26m write-off]. Accommodation Services looks like a mess - there's no value in that. The roads business is the only good bit."
Some of the write-offs appear to relate to pension deficits. Jarvis took a pensions holiday two years ago when the rail division had a £32m surplus.
However, one year later under the FRS17 standard this had become a £47m deficit. It is thought Network Rail is insisting Jarvis should bear the burden of topping it up as staff are transferred back to the public sector.
As the month wears on, it is feared Jarvis' management will look to jump ship, further eroding the group's ability to move forward.
Rawlinson concluded: "It's not a bad company, it's just been overly aggressive in bidding and accounting. There's a lot of good work in Jarvis."
n Jarvis' clients are hoping for the best, but preparing for the worst.
Jarvis has a £120m student accommodation contract at Lancaster University. A client spokesman said: "The University has been assured [by Jarvis] that the recent share price announcement does not affect the current work. Progress on site is being actively monitored. The University is developing contingency plans around a number of scenarios for phase 2."
A Brighton & Hove Council spokesman said: "We will continue to liaise closely with Jarvis to ensure that levels of service are maintained at our four PFI schools. We do take the issue very seriously and are looking closely at the provisions of the contract."
A school source on the £92m Norfolk Schools PFI, where Jarvis is preferred bidder, said: "The council would be mad to go with Jarvis now."