Jarvis plc Half Yearly Financial Report 2009

Jarvis plc publishes its interim results for the period ended 16 October 2009. A summary of key points follows:

Financial

• Results slightly ahead of management expectations
• Group turnover for the period: £114.7m (2008: £203.1m)
• Loss before tax and exceptional items: £3.6m (2008: profit £4.4m)
• Exceptional items of £2.3m relating to previously announced restructuring and redundancy costs
• Net debt at 16 October 2009: £22.3m (2008: £34.6m) with overall loan facility extended until January 2011

Strategic highlights

• Stuart Laird appointed Chief Executive Officer in September
• Graham Denton appointed Group Finance Director in October
• Restructuring now largely completed with emphasis placed on improving development capability and developing relationships with new customers

Operational highlights

• Rail
  • Rail volumes reduced as anticipated with restructuring now largely completed
  • Selected as one of Network Rail’s preferred Multi-Asset Enhancement contractors
  • Successfully commissioned major projects in Stoke, Scotland and the London North East territory
• Plant
  • Volumes reduced in line with expectations
  • Increased operating profit through operational efficiencies and restructuring
  • Secured one year extension to National OTM contract to April 2010
• Freight
  • Secured 32 month extension to coal haulage contract with E.ON
• Accommodation Services
  • Significantly improved performance together with favourable settlement of historic claims

Outlook

• Network Rail’s CP4 five year control period has commenced and whilst spend has been delayed this year Network Rail has a programme which is funded to 2014.
• Due to the delay in new projects being awarded we are now anticipating that the full year performance will be broadly breakeven at the operating level
• Bidding activity both with Network Rail and potential new customers has increased significantly and we are confident this will prove successful in new contract orders in the near future.

Steven Norris Chairman Jarvis plc, said:
“As we have said previously, conditions during this financial year will be difficult but due to the hard work and determination of everyone involved we are able to report a first half performance slightly ahead of expectations. It has not been without its pain. We have undergone a huge restructuring programme which I am pleased to say is now largely completed and I thank all our colleagues in the business at every level for their support throughout this time.”

“We have placed particular emphasis on improving our business development capabilities and developing relationships with new customers. We are now beginning to see the fruits of that exercise both with Network Rail and other customers and we are confident that this will prove successful in the award of new contracts in the near future. Reducing our dependency on Network Rail is a key objective of the business and an important way of ensuring we delivery future volume improvements and a healthier business as a result.”

For further information please contact:

Toni Jackson
Head of Communications - Jarvis plc
T: 01904 712667
M: 07921 939031

Tim Anderson or James Strong
Buchanan Communications
M: 07921 939031

View the full release (PDF, 110kb).

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View the RNS Part - 2

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