Interim management statements: Jarvis, Findel and Spice

SPICE, the utility support services group, today said it expected annual performance to be in line with expectations as the core markets it operates in continued to look strong.

The Leeds-based group also revealed its distribution division had made two acquisitions earlier this month, with Treewise and Stow Land Control being bought for a combined total of £1.6m.

Treewise provides tree clearance services on electricity networks, whiel Stow Land provides specialist vegetation control services in electricity substations.

Spice said strength in its billing, energy and electricity businesses had mitigated weaker performance in the “softer” markets of facilities and gas.

For the six months to October 31 Spice saw revenue up 34% to £192.6m while profits before tax, exceptional items and amortisation were up 41% to £14m.

Spice expects to announce its results for the year to April on July 6.

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HOME shopping and educational supplies business Findel today said group sales for the 44 weeks to February 6 were 3% down on the same period last year and said it was reviewing the future of two of its brands.

However, the Burley-in-Wharfedale-based business said it believed that to be a “satisfactory performance” in the current market but said that it would teake “decisive action” where necessary.

Sales in its home shopping division remained 6% lower than the same period last year which Findel said reflected both a tough consumer environment and its planned scaling back of recruitment in its home shopping credit business.

Findel said it was reviewing the viability of The Cotswold Company and Letterbox and said both were suffering from difficult trading conditions.

The group said it expected performance for the financial year in its educational supplies business to be satisfactory. However sales in its healthcare division were 14% ahead of last year.

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RAIL maintenance group Jarvis said it would look to reduce its operating costs following Network Rail’s decision to reduce track renewals on the London North East programme.

The York-based firm has agreed a revised cost structure with Network Rail following the decision, but this is expected to result in neutral cash flow for Jarvis.

Jarvis said a drop in rail project volumes would hit its full year results which are now expected to be below management expectations and that lower rail activity levels would continue for the first half of its next financial year at the earliest.

Steven Norris, executive chairman of Jarvis, said: “The company has performed strongly this year as the various strategic initiatives taken over the past three years to reshape the business have taken effect.  
 
“The board is therefore naturally disappointed that Network Rail has decided to adjust the phasing of its five year track renewals programme.

“This will clearly result in significantly less work in the next financial year for our rail and plant businesses.

“However, with almost £4bn being invested in track renewals over the next five years and as one of Network Rail’s chosen track renewals contractors, we will be working closely with them to ensure that our business is restructured to help them achieve their targets and to ensure that we are well placed to maximise the longer term opportunities which continue to exist.”