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Jarvis issues profit warning, blaming contract delays

Jarvis expects to report a full year operating loss in the region of £5 million, it said today.

In a trading update bosses said: “Trading conditions have continued to be difficult during the period, specifically with the timing of contract awards which now means that full year performance is likely to be below previous management expectations.”

Jarvis has recently tried to move away from its reliance on Network Rail as its biggest client.

The firm said: “The new management team has concentrated on improving our performance and efficiency whilst reducing our dependency on Network Rail. The emphasis we have placed on this is already bearing fruit.

“The Evergreen contract is a huge boost and we now have a strong bid pipeline with a significant proportion of work secured already for next year.”

The management team was recently strengthened, with the appointment of Phillip Price as managing director for rail and plant on 1 February. He has taken over day to day responsibility from John Snowdon who plans to retire.

Mr Price joined Jarvis from Laing O’Rourke where he has been managing director of its infrastructure business for the last three years.

Jarvis company chairman Steven Norris said: “It is particularly pleasing that Stuart Laird and Graham Denton have settled into their positions as chief executive officer and finance director and have been focussed on further strengthening the management team, improving efficiencies within the business and supporting our business development efforts.”

In early trading, Jarvis shares had fallen by 12 per cent this morning.