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Battling Jarvis to sell roads maintenance business

Troubled Jarvis is in advanced negotiations with Accord to sell its roads maintenance division, one of the only remaining businesses it has left.
It will keep hold of its core roads business Prismo and Somerford Equipment.

Jarvis announced last week further crippling losses totalling £353.8 million for the year ending March 31. It has maintained that road work along with rail renewals and plant hire make up its core business and it has sold off all its other interests.

It said nearly two-thirds of the losses were due to one-off items such as a goodwill write-off in its roads business, restructuring costs and provisions for construction losses.

The sale will include its 80 per cent shareholding in Herefordshire Jarvis Services, a venture with Herefordshire Council, and its 50 per cent interest in Accord Jarvis.

Jarvis has come up with a debt-for-equity restructuring plan to try and save the company. The firm has been battling for survival after over-stretching itself on contracts, particularly on private finance initiative deals - which lost it £256 million a year ago.