Jarvis reacted bullishly this week to suggestions that it is vulnerable to takeover.
Reporting flat pre-tax profit of 拢31.6m for the year to 31 March, chief executive Paris Moayedi and finance director Henry Lafferty defended the company鈥檚 record.
Moayedi said: 鈥淵ou may say people are making bids for the company, but I would say you would find it hard to make a business case for any other business against the current management. We are the envy of most of our competitors in terms of return on turnover and reliance on high-technology.鈥�
Rumours have been circulating that a number of firms are eyeing Jarvis because its share price is flagging. On Tuesday, it stood at 160.5p 鈥� one-fifth of its 787.5p peak in June 1998.
Lafferty, who steps down as finance director this month to take over responsibility for Jarvis鈥� projects business and private finance initiative portfolio, said: 鈥淲hich company could look at our business and say we can improve your cash generation or your return on turnover?鈥�
Turnover for Jarvis Group was up 8% at 拢669.1m for the year. The group鈥檚 order book doubled to 拢2.2bn.
Lafferty said the group was investigating new sectors, including local authority and Ministry of Defence work. He said: 鈥淲e are interested in smaller projects that are replicable. And we interested in working with people who are regular procurers.鈥� Jarvis has also set up a joint venture 鈥� Odyssey Property Services 鈥� with investment bank Warburg to bid for corporate PFI work.
Moayedi said that relations with Railtrack, Jarvis鈥� biggest client, were good, despite a contract dispute last year. 鈥淚n the past year, all of the contracts we have won with Railtrack have been open-book alliances,鈥� he said.
Jarvis recently appointed Bill Colvin, formerly of nursing home company NHP, to take over as finance director. City sources have speculated that Colvin, who assisted in the hunt for a buyer for NHP, may have been brought in to find potential suitors for Jarvis.
