Jarvis _ Out look 2004

As a key supplier i have been watching this share with interest. I bought 120,000 on the 23rd having closed a previous position 10p-17p. This is definitely another AHT which I was lucky enough to buy at 14p and still hold in an ISA. I also bought Corus at 4.6p but did not have the guts to hold on for the real money.I am holding this one for the long term. Wish you all well.


To our key suppliers and to employees

I am writing today to inform you that we have succeeded in all our
immediate
objectives by agreeing the sale of Tube Lines and our European Roads
businesses, arranging a re-financing package with our lenders and
agreeing
the completion of our outstanding construction projects.

We have sold our European Roads business to Somaro for £24.5m. This is
subject to competition authority approval in France, but I believe that
this
will be completed in early April 2005.

Today we have arranged a re-financing package with our lenders, which
should
ensure that our borrowing facilities will be extended to 27 March 2006.

The disposal of our Tube Lines interests has also been completed and
this
will produce an in flow of £147m in January. This should be shortly
after
the EGM which will be held on 10th January.

With regards the construction, talks continue with co-investors and
holders
of performance bonds, to provide the cash required to complete the
construction of 14 PFI projects. Some contracts could be handed over to
another contractor to finish, while Jarvis would finish the remainder, a
number of which are very close to completion.

We have already announced that we have reached agreement with Network
Rail
on arrangements relating to five leasehold interests held by the group
and
39 other property investments to the value of £25m.

Our cash position will continue to be tight until the Tube Lines
receipts
come in but thereafter we will move into different territory. I want to
thank you for your continued support and understanding. I would
especially
appreciate your support until the Tube Lines proceeds come in, in the
week
commencing 10th January.

The Class 1 circular we have issued for the disposal of our Tube Lines
interests does not contain a clean working capital statement. This is
particularly due to the European Roads transaction which is subject to
French competition authority approval. There may be negative public
comment
about this, but I hope that a proper reading of our announcements and
sensible understanding of the remarkable achievements of the last few
weeks
in the Group's fortunes will come through.

I should add that we all anticipated that this would be a difficult
year,
and that the first half would be especially hard for us. Next week we
will
issue our interim results and these will contain some substantial write
offs; these have been catered for in our cash forecasts.

The announcement we have made today marks a tremendous step forward for
Jarvis, and we are all looking forward keenly to the opportunities that
2005
will bring.

Happy Christmas to you all and good wishes for 2005.

Yours sincerely


Alan Lovell
Group Chief Executive
Jarvis plc