Jarvis _ Out look 2004

Jarvis share price soars but more to be done
By Toby Shelley
Published: December 29 2004 10:29 | Last updated: December 29 2004 10:29

Shares in Jarvis rose further in early London trading on Wednesday, standing 39 per cent higher at 25p. The increase followed a 20 per cent rise to 18p on Friday, the last day shares were traded in London.


The troubled support services company announced it had made a pre-tax loss of £283.1m ($547m) in the six months to the end of September. This compared with a profit of £33.7m in the same period last year.

Commenting on the interim results, Steven Norris, chairman, said they “represent the nadir of the group’s fortunes” and that “many of the serious issues facing the group have been resolved”. But he added that “more work needs to be done in many areas to re-establish and enhance our reputation in our core markets”.

Exceptionals accounted for £240.1m of the reported pre-tax loss, mainly relating to the write-off of goodwill in the roads business and provision for losses in construction plus write-off of aged debtor balances and work in progress, the company said.

The price rise on Monday appeared to have been sparked in part by hopes of a new investor coming into the company. But Alan Lovell, chief executive, said any such move would be in the long term and would not even be looked at until the second quarter of 2005. He said Jarvis is not in talks with any potential new investor.

Mr Lovell stressed that the company did not believe a new investor was necessary at this point. He emphasised the short term objectives of completing the sale of the Tube Lines by 10 January in order to secure an extension of banking facilities.

Friday’s rise in Jarvis’ share price came on the back of news that it had reached agreement to sell to Amey its stake in the London Tube Lines consortium for £146.8m.

In the course of 2004, Jarvis shares have sunk from 218p in mid-January to a low of just 7p in early December.


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