Jarvis warns of rail work plunge

Network Rail has told Jarvis that work under its track renewals programme will be "significantly reduced" in the year to March 2010.

The firm put out a Stock Exchange announcement today stating: "Network Rail has communicated an intention to significantly reduce its track renewals volumes and expenditure in the year to 31 March 2010 from current levels for all of its four track renewals contractors.

"Jarvis is one of these contractors and is currently seeking clarification in respect of the likely effects and financial impact if this proposal is implemented."

The four contractors carrying out renewals work are: Jarvis, Amey SECO joint venture, Balfour Beatty and First Engineering.

Jarvis is one of four contractors currently working on the renewals programme, and was one of seven firms chosen yesterday by Network Rail for its £800m track enhancements framework.