Rail contractor beats City expectations by posting 拢11.1m pre-tax profit and 12% jump in turnover
Jarvis has returned to the black and beaten City expectations in the year ended 31 March 2008.
Pre-tax profit was 拢11.1m compared with a loss of 拢21.7m last year, beating the consensus forecast of 拢5.5m.
Turnover increased 12% from 拢288.5m to 拢321.9m, thanks to a strong second half of the year.
Chairman Steven Norris said: 鈥淭he period just ended was a significant milestone for the new Jarvis and we have achieved the best result for five years. This result, our performance to date and the increasing opportunities within the rail market allow us to look forward to the year to come with confidence.鈥�
Turnover from its rail operations increased 45% from 拢142.3m to 拢206.3m, while its plant division made 拢53.4m 鈥� 21% down on last year鈥檚 figure of 拢68m.
Norris said the group was well-placed to take advantage of the 鈥渟ignificant opportunities鈥� in the UK rail market given that spending levels were at an 鈥渦nprecedented high鈥�.
Jarvis has suffered from reputational and financial difficulties since the Potters Bar train derailment in May 2002, for which it accepted liability on behalf of the industry. It subsequently got into difficulties by bidding for PFI contracts that analysts said it didn鈥檛 have the capacity to fulfil.
There has also been recent speculation it would be taken over given its weak share price. The group has failed to rule out a sale and said it was considering all strategic options.
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