Completion of audit of financial statements for the year ended 31 March 2004

Following the preliminary announcement, the Board has concluded that it should adopt the accounting treatment recommended by the auditors for the sale of the economic interests in many of the Group’s UPP and PFI projects. Accordingly, the auditors’ report is not qualified. The auditors’ report continues to refer to the fundamental uncertainties summarised in the preliminary announcement.

As a result of the timing of recognition of these transactions, certain items will no longer appear in the audited accounts for the period ended 31 March 2004, but will now be recognised in the current financial year and as such have no material impact on the group.

The impact of adjusting for these items is:

Profit and Loss Account

There will be a reversal of exceptional income of £3.5m and a loss on disposal of £0.9m. In addition, the application of accounting standards requires that an impairment provision of £6.0m be made in respect of certain of the joint ventures held at the balance sheet date, whilst profits of £5.1m on other joint ventures will be recognised in the current financial year. Having accounted for other reductions to turnover of £0.4m, the net effect is to increase the reported loss before tax in respect of the UPP and PFI joint venture transactions by £9.0m in the year ended 31 March 2004. The income arising will now be recognised in the current financial year.

Balance Sheet

Adjustments to be reflected in the audited balance sheet include a decrease in the provisions for losses in construction of £10.4m and a decrease in the accrual for deferred income of £4.6m. In addition, the linked presentation of non-recourse gross assets and liabilities of £484.4m and £489.2m respectively will be included on the balance sheet as at 31 March 2004. Net debt at the financial year end will be increased by the reversal of receipts under the transactions of some £23.1m, although these amounts were received shortly after the financial year end.

Jarvis plc’s audited abridged financial statements are set out below. The auditors have reviewed this announcement and have given the Board their written consent for its release.

10 August 2004

Contact details:

Jonathan Haslam
Tel: 020 7462 4646

Tulchan Communciations

David Trenchard
Tel: 020 7353 4200

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