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Jarvis sees light at the end of the tunnel

Jarvis chairman Steve Norris hailed a turnaround in the company's fortunes as the struggling support services firm made a modest profit following a dramatic restructuring of the business.
Jarvis made an operating profit of £6.2 million for the six months to September, compared with last year's £45.7 million loss.

The change in fortunes follows a debt for equity swap to clear almost £300 million of debt and the sale of subsidiaries to leave Jarvis with road, rail and plant businesses.

Mr Norris said: 'Having survived what has been unquestionably the most difficult period in the company's history and successfully completed one of the most complex and challenging restructurings seen on the London stock market, the company is now

returning to normality.'

Exceptional costs involved with the rescue of the business left it with a pre-tax loss of £60.9 million, compared with last year's £283.4 million plunge into the red.

Turnover was down to £204 million from £302.8 million due to the exit from construction and most highways maintenance, as well as delays to rail projects.

Jarvis hopes it will only be involved with one of the 14 PFI building contracts which caused so many financial problems for the group by the end of the year.

The firm's rail and plant business showed a strong recovery over the

period to make profits of £14 million on a turnover of £128.1 million, slightly reduced by the decline in West Coast and Thameslink work.

The recovery was more sluggish in the roads business, where Jarvis reduced losses to £2.5 million on a reduced turnover of £37.6 million due to its exit

from nearly all highways maintenance business.

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