Jarvis losses reach £350m

Over the past two years Jarvis has manage to get itself into a staggering financial muddle, achieving a cumulative loss in that period of £610m.

Latest financial results announced on the Stock Exchange this morning (Friday), covering the 12 months to 31 March 2005, show a pre-tax loss of £350m. In the previous year, Jarvis dived into the red to the tune of £260m.

Turnover has plunged to £840m, well down on the £1.3bn figure in the previous year. Three reasons for this are the transfer of rail maintenance to Network Rail on 1 April 2004, less track renewal work on the West Coast Main Line and the decision to withdraw from bidding for all construction and FM contracts.

The latest £350m loss includes £250m of exceptional charges.

Within this £250m tally is £110m for losses and provisions against contracts undertaken by the Accommodation Services division together with a further £23m adjustment to the cost of sales on Facilities Management contracts.

Jarvis also had to stump up an £18m provision against onerous lease liabilities and £8m to cover redundancy costs.

Impairment of goodwill attributed to UK Roads’ business led to a further £65m charge.

Keeping Jarvis afloat hasn’t come cheap - professional fess associated with the restructuring ran to £55m.