UK - Jarvis turns corner

Jarvis has reported an operating profit of £6.2m following the financial restructuring of the company. This compares with last year's all time low with losses reaching £49.5m.

Its interim results showed turnover down to £204m from £299m last year with net debt of £6.2m after it sold its construction and highways maintenance contracts.

The group currently has 14 operational PFI contracts which were the subject of settlement deeds in January 2005. However, Jarvis hopes that by the end of the year it will be involved in only one. It has transferred its FM services to the UPP which originally serviced its university accommodation operations. Three other contracts have been sold, leaving 30 to be resolved.

Further financial difficulties have been avoided following its debt for equity swap in September and the sale of any lossmaking businesses. This effort to keep all profitable businesses has left the company focusing on track renewal, plant hire and UK roads.

Steve Norris, Jarvis’s Chairman said: “This statement reflects a number of welcoming firsts. It is the first since the successful completion of the financial restructuring in September of this year, the first which we report under the new International Financial Standards and the first time for two years that we report operating profits.”