Jarvis plc Annual Financial Report Announcement 2009

Jarvis plc today announces financial results for the year ended 31 March 2009

Financial:

• Group revenue* £345.8m (2008: £321.9m)
• Profit for the period* £5.1m (2008: profit £7.5m)
• Exceptional costs £11.4m, as previously announced, relating to restructuring and redundancy costs and exit from container haulage business
• (Loss) / earnings per share (4.5p) (2008: 5.4p)
• Net debt down to £21.5m from £38.8m in 2008
• Working capital facilities successfully extended to January 2011

*before tax and exceptional items

Strategic delivery:

• Reduced central overheads to £10.2m (2008: £12.4m) - now below strategic target and achieved in line with plan
• Secured extension to E.ON coal haulage contract in Freight until December 2015
• Focused on development of Rail, Plant and Freight businesses while ensuring Facilities Management business continues to improve margins

Board Changes:

• Richard Entwistle, Chief Executive, will retire with effect from the Annual General Meeting in September this year
• Stuart Laird, currently the Group's Chief Operating Officer, to be appointed as Chief Executive following the retirement of Richard Entwistle
• Professor Brian Mellitt to retire as a Non-Executive Director following completion of his second three year term

Outlook:

• Network Rail committed to a course of substantial improvement to the UK rail network which is greater than any other period, although commencing later than initially expected
• Working closely with Network Rail to ensure we are at the forefront of the challenge to deliver more efficient ways of working
• Crossrail is now progressing and Network Rail has announced plans to electrify the whole network
• Significant opportunities in the global rail market for contactors with our level of expertise
• Confident of wider opportunities in Freight, longer term prospects positive

Steven Norris, Executive Chairman Jarvis plc, said: 'I am pleased to report that the results for the year to 31 March 2009 are in line with management expectations. This is testament to the effort put in at all levels across the business.

Our strategy continues to be that of concentrating on the development of our Rail, Plant and Freight businesses while ensuring that our facilities management business continues to improve margins. We are ensuring we will be at the forefront of the challenge to produce more efficient ways of working which will ultimately deliver a seven day railway. The current economic conditions and Network Rail's decision to delay works created a difficult trading environment in the second half of the year under review and this is expected to continue through 2009-10. The prospects beyond that appear much more promising.'

For further information please contact:

Toni Jackson
Head of Communications - Jarvis
T: 01904 712 667
M: 07921 939031

Tim Anderson / Isabel Podda / James Strong
Buchanan Communications
T: 020 7466 5000

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