Jarvis offers hope of recovery

Beleaguered UK engineering firm Jarvis signalled a “dramatic turnaround in fortunes” today as it reported significantly reduced annual losses.

The company posted pre-tax losses of £58.2m (€85.3m) for the year to March 31, which was in stark contrast to a £391m (€573m) deficit a year before.

Jarvis, which suffered financial problems since the Potters Bar rail crash in 2002, also hinted it was now on course to stage a complete recovery.

The company benefited from a financial overhaul last year which saw managers hand 95% control to creditors in a debt-for-equity restructuring.

It also sold a number of peripheral businesses while pledging to focus on core businesses including rail renewal, roads and plant hire work.

The changes sparked a fall in turnover during the year to £401.2m (€588m) from £509.7m (€747m) in 2005, but has been key in helping Jarvis rebuild.

Steven Norris, executive chairman, admitted there was still work to do, but said the group’s core businesses were now returning to a position of strength.

In a statement the firm said: “The year has seen a dramatic turnaround in fortunes as the group has successfully charted a course through a complex financial restructuring.

“The year started with the group’s survival being in question, but has ended on a much more optimistic note.”