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Jarvis gets new £25m lease of life

NEWS

JARVIS has met all the conditions of its agreement with creditors to provide the company with £25 million-worth of additional banking facilities and continued support until March 25 next year.

Last month Jarvis said it would book an extra £9 million loss in its final accounts after the completion of its audit, taking total pre-tax losses to a shattering £256 million.

Jarvis said the increase related to changes in the timing of accounting for the sale of the group's interests in two PFI and University Partnership Programme joint ventures.

The group said its auditors had advised it to account for the income from the two transactions in this financial year, rather than last. Jarvis said the changes would have no material impact on the group.

But the auditors' report referred to 'the fundamental uncertainties'summarised in the group's final results in July.

As part of terms agreed with lenders - headed by Barclays and the Royal Bank of Scotland - Jarvis now plans to focus on UK rail activities and local authority services while scaling back on accommodation services. It must also sell off non-core activities and take out up to £30 million of costs to satisfy their requirements.