 |
|
        |
|
 |
|
| |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Update on Trading28/01/2004 In November we announced that the first half of the year had seen a lower level of contracts awarded to the Accommodation Services division which impacted the first half results. This division has recently seen a considerable improvement in the level of appointments as preferred bidder and over the last two months, we have been appointed preferred bidder for four new PFI projects. However, all four took longer than anticipated to reach preferred bidder stage, thus incurring additional bid costs. We now believe these contracts are unlikely to reach financial close until next financial year and hence recovery of the bid costs will be deferred. A further six PFI projects where Jarvis is shortlisted were expected to reach preferred bidder stage by January this year. They have not yet done so. As a result of current delays, these projects will now also incur additional bid costs beyond those previously anticipated. Similar delays have occurred with four further UPP contracts where decisions have been delayed. The overall impact on the division of these delays in the current financial year is expected to be approximately £12m. However, next year we expect to see a significant recovery in the division's profitability from the level in the current year. In order to reduce the risk in this business, the Board has instigated a programme to reduce bid costs by some £6m. We are also adopting a more selective approach to bidding and are consolidating the separate projects, construction and facilities management operations into one integrated business. This will have the benefit of streamlining the bidding, project management, construction and facilities management processes and reducing costs. In addition, in the light of progress to date, the Board regards it as prudent to write down Jarvis' investment in its primary health joint venture by £1m. The remainder of Jarvis' activities are performing according to expectations. Excellent progress is being made on discussions with Network Rail both on exiting rail maintenance and on realising the rail maintenance receivables and shareholders will be updated when these discussions are completed. Jarvis plc |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
 Print this page |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Legal
disclaimer | Privacy statement | Jarvis plc – Registered in England. Registered office: Meridian House, The Crescent, York, YO24 1AW. Registered number: 2238084