Jarvis sells Baltic business

British support services group Jarvis today took another step in its withdrawal from rail maintenance with the sale of its stake in its Estonian business.

The group said it was selling its share of its Dutch joint venture, Jarvis Estonia, to EEIF Rail – an affiliate of its partners in the venture – for £6.75m (€10m).

Last October Jarvis, which is at the centre of the inquiry into the Potters Bar rail crash, announced it was pulling out of the UK rail maintenance business, but would continue its work on track renewals.

At the time, its strategy director told the House of Commons Transport Committee that track renewal did not “attract the same reputational problems as maintenance”.

Today, Jarvis said: “The disposal of this overseas investment reflects the group’s refocusing of its activities following the withdrawal from rail maintenance.”

The sale to EEIF is expected to be completed by August 9.

The value of Jarvis’ interest in Jarvis Estonia last September was £5.8m (€8.7m). Its contribution to group earnings in the year to March 31 2003 was £700,000 (€1m).

As well as track renewals, Jarvis works on engineering contracts and has an accommodation services business, which is involved in school rebuilding and other PFI projects.

Half year figures showed a 24% rise in group turnover to £710.4m (€1bn) and a 77% gain in pre-tax profits to £33.7m (€50m).

Shares in Jarvis rose half a penny to 78.5p today.