Jarvis upbeat despite uncertain backdrop
RAIL maintenance specialist Jarvis has said its strategy to focus on specific parts of its business, dispose of unprofitable activities and reduce overhead costs remains on track.
The York-based company also said trading since the start of its current financial year in April had been in line with management expectations.
Jarvis said its plan, which includes focusing on its rail, plant and freight businesses, was succeeding against “a backdrop of an increasingly uncertain economy which has inevitably affected the business”.
Jarvis said revenues in its plant division had been impacted by lower demand for transport vehicle hires and in freight by a reduction in freight container imports. Both areas were also hit because of higher fuel costs.
However Jarvis said it had been pleased with increased volumes or orders in its rail business. Work won included an extension of a remodelling contract at Rugby station which is valued at more than £40m.
Jarvis’s executive chairman Steven Norris said: “The implementation of our strategy to focus on our rail, plant and freight operations and reduce our cost base remains on track. There is still some work to do to rationalise and restructure the plant business to ensure its performance continues to improve, and we are fully focused on the safe delivery of our increased workload.
“Clearly Jarvis cannot be immune from the macro-economy which, whilst impacting on performance during the year to date, has not detracted from a solid overall performance, nor does it undermine our outlook on the rest of the year which continues to be one of cautious optimism.”
Jarvis held its annual general meeting yesterday and all resolutions were passed.
In May Jarvis reported profits of £11.1m for the year to March 31 compared to a £21.7m loss the previous year – the group’s best overall results since 2003.
