Preliminary announcement of unaudited results for the year ended 31 March 2004 and conclusions of strategic review

• Total turnover increased by 10% to over £1.3 billion (including share in joint ventures)

• Group operating profit before goodwill amortisation and exceptional items declined from £79.6 million to £9.2 million

• Loss before tax of £246.7 million, compared to profit before tax of £62.7 million for the year ended 31 March 2003. Operating exceptional items of £186.3 million; non-operating exceptional items of £55.6 million

• Earnings per share before goodwill amortisation and exceptional items of 10.9 pence, compared to 33.7 pence. Loss per share post-exceptionals of 165.2p

• Fundamental uncertainties exist in respect of the going concern basis of preparation of the financial statements, the recovery of entitlements and the extent of future losses in construction contracts.

Recovery Strategy

• Terms agreed with the Group’s lenders for the provision of £25.0 million of additional banking facilities and continued support (through to 25 March 2005). Overdraft arrangements and bonding facilities which together total some £21.5 million, to remain in place.

• Jarvis to focus on UK rail activities and roads together with the provision of the local authority outsourced services market. Jarvis Accommodation Services to be scaled back.

• Disposal strategy to reduce debt and exit non-core activities.

• Cost reduction programme underway - over £30 million of potential annualised cost savings identified.

• Good progress made regarding debt recovery with Network Rail.

• Corporate structure substantially simplified; management team significantly strengthened.

Commenting on the announcement, Kevin Hyde, Chief Executive said:

“This has been a difficult year for the Group and the results are disappointing. However, we are pleased to announce the continued support of our lenders and I am grateful to them for their constructive attitude, which allows us to complete the recovery strategy we embarked on some months ago.

Our recovery strategy is designed to develop a simpler, leaner and more cash generative business that is sustainable in the long term. In the last few months we have acted on a number of challenging issues and are well advanced with a range of important disposals."

Contact details:

Jarvis

Paul Ravenscroft
tel. 020 7462 4639

Tulchan Communications

Andrew Honnor
David Trenchard
tel. 020 7353 4200

View the full preliminary results (PDF, 252KB).

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