Jarvis boosts cashflow with bargain plant sale

Highways contractors are circling Jarvis to pick up money-in-hand, half-price plant, machinery and fleet vehicles as the beleaguered contractor tries to boost its cashflow.
Sources say that highways maintenance contractors such as Amey, Carillion, Ringway and Nuttall are believed to have been approached by Jarvis as the company tries to sell its surplus fleet for the first cash offer it gets.
"Jarvis is desperate to get what it can for its plant," one contractor said. "It is virtually asking contractors to name their price as long as it is cash.
"It doesn't want to wait for any 30-day payments for the kit as it realises it needs the cash now to appease the banks. Jarvis is willing to cut the price massively to get cash payments."
One recent example concerns the plant Jarvis used on its Cheshire County Council roads maintenance contract, where it was the incumbent contractor, but then lost out to Nuttall for the new £140m, seven-year deal.
"Nuttall has made an absolute killing," said a source close to the contract. "It was aware of Jarvis's financial position and knew it could almost name its price for the kit. Although it turned down several parts of Jarvis's fleet because of its overall condition, Nuttall was able to pick up multi-million-pounds-worth of kit for almost half the price."
Ringway is also believed to have benefited from Jarvis's financial position by picking up discounted plant when it replaced the incumbent contractor on Bracknell Forest Borough Council's £50m, five-year highways term maintenance contract.
A Jarvis spokesman said: "People talk to us all the time about business opportunities."
However, a source close to Jarvis told CJ that the group was looking to sell any of its surplus stock "as quickly and cheaply as possible".