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Jarvis pins hopes on sell-off

NEWS

CASH-STRAPPED support services firm Jarvis is selling off its property in a last-ditch bid for cash to keep it afloat.

The company faces insolvency if shareholders reject plans for the £25 million sale of over 40 properties to Network Rail.

Jarvis is in discussions with lenders over a refinancing deal but, if this proves unsuccessful, the group will need emergency funding again by the end of January - potentially on terms unfavourable to shareholders.

Chief executive Alan Lovell said: 'A refinancing will not be achieved if there were to be a material adverse change in the group's underlying businesses or other material adverse developments.'

The future of the firm now depends on the sale of its European roads business and its stake in the Tube Lines London Underground PPP consortium.

Jarvis completed the sale of its PFI bidding operation to Hochtief for £1.2 million last week and the new owners are in discussions with clients over taking on schools contracts in Manchester, Bangor in Northern Ireland as well as the deal for the Cork School of Music in Eire.

But Jarvis is still looking to off-load the deals with outstanding construction works bleeding the working capital from the business.These include two health deals in London and Birmingham, two schools schemes on the Wirral and in Richmond, the Croydon Learning Village and student accommodation projects in Nottingham and Lancaster.

Jarvis's share price was teetering at 8.5p as Construction News went to press.