JARVIS chief executive Alan Lovell has admitted that the struggling support services firm is on a financial knife-edge as it desperately seeks cash to remain in business.
The firm sealed a deal with Deutsche Bank to provide £31.4 million in working capital and loans this week, but lenders will hold more than 95 per cent of the firm's shares under a debt-for-equity swap to raise £50 million.
Mr Lovell hopes to have the cash in place by August, but said: 'The directors acknowledge that forecasting in the group's current position is inherently difficult, that financial headroom is minimal and so there is a very limited margin to accommodate any adverse trading or other developments which might have an impact.'
Jarvis, which has been suffering from 'challenging'conditions in its core road and rail markets, is going back to shareholders to increase its borrowing.Under its articles of association the company is allowed £350 million of debt. Current borrowings stand at £305 million. The firm wants shareholders to approve an extra £40 million.