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Jarvis staff unsure of the future
16:49 14 Jul 2004
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Jarvis insiders are just as pessimistic about the group's chances
of survival as its subcontractors and suppliers and City analysts.
At 2.58pm last Friday the group told the City its debt level had reached a worse-than-expected £230m as it revealed write-offs amounting to £156m. It has breached its banking covenants, but Royal Bank of Scotland and Barclays have waived those breaches until the end of July.
The share price slumped from 79p at the opening of Friday trading to 35p by the close. The price continued to slide on Monday, reaching 22.5p as CJ went to press.
Some senior Jarvis managers were unaware of the announcement until worried suppliers pestered them later on Friday afternoon.
"The only way forward is to sell our share of TubeLines," one said. "This could finish us off," another added.
Some analysts fear Jarvis will not even make it to the end of July as subcontractors and suppliers take a hard line on payment.
<E0E4> Turn to page 3 for the full story.
At 2.58pm last Friday the group told the City its debt level had reached a worse-than-expected £230m as it revealed write-offs amounting to £156m. It has breached its banking covenants, but Royal Bank of Scotland and Barclays have waived those breaches until the end of July.
The share price slumped from 79p at the opening of Friday trading to 35p by the close. The price continued to slide on Monday, reaching 22.5p as CJ went to press.
Some senior Jarvis managers were unaware of the announcement until worried suppliers pestered them later on Friday afternoon.
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"The only way forward is to sell our share of TubeLines," one said. "This could finish us off," another added.
Some analysts fear Jarvis will not even make it to the end of July as subcontractors and suppliers take a hard line on payment.
<E0E4> Turn to page 3 for the full story.
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