Jarvis plc Half Yearly Financial Report for the half year ended 30 September 2007

Jarvis plc announces interim results for the half year ended 30 September 2007. A summary of key points follows:

Financial

• Group turnover for the period* £136.3m (2006: £143.5m)
• Loss before tax* £0.6m (2006: profit £0.5m)
• Loss for the period £2.5m (2006: loss £11.6m)
• Net debt at 30 September 2007 £41.4m (2006: £45.8m)
• Exceptional costs of £2.7m resulting from the delayed disposal of the loss making Accommodation Services contracts largely offset by exceptional profit of £2.4m on the disposal of the Group’s 80% shareholding in Herefordshire Jarvis Services Limited

*From continuing operations, before exceptional items

Strategy and Operational

Considerable progress made:

• Selected as one of Network Rail’s four primary track renewal contractors generating secure workload of £95m-£100m per annum until 2009 with the potential for extensions of up to five years
• Fastline Freight secured a major contract award for E.ON on track to commence in April 2008
• Termination of the three major loss making FM contracts
• Disposal of non-core Herefordshire Jarvis Services Limited
• Continued focus on reduction in overheads

• Prospects in Rail renewal business going forward very good with the Government and Network Rail committed to a substantial programme of enhancements
• Full year performance in the current financial year likely to be materially below previous expectations primarily due to the utilisation pattern under the On Track Machine contract and lack of visibility in Plant forward orders (as per detailed statement of 22 November)
• While the pace of recovery has been slowed the overall strategy remains in place. The Company still expects to record its best full year result since 2003

Steven Norris, Executive Chairman Jarvis plc, said:

“We have made considerable progress in the recovery of the Group and are pleased with what has been achieved to date. However we still face considerable challenges as outlined in our recent statement and much remains to be done.”

For further information, please contact:

For media:

Toni Jackson
Group Communications Manager – Jarvis
T: 01904 712667
M: 07921 939031

Isabel Podda
Director – Buchanan Communications
T: 0207 4665000

View the full release (PDF, 73KB).

View the RNS.

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