Jarvis braced for loss

Feb 17 2010 By nebusiness

Rail and plant firm Jarvis today braced investors for heavy losses as spending delays from Network Rail keep up the squeeze on the business.

The York-based company’s profit warning comes after a "very considerable reduction" in rail and plant work as the network operator puts back track renewal investment.

Jarvis now predicts a £5m operating loss this year, although more financial pain - including a further £3m in restructuring costs - will mean an even deeper slide into the red in the group’s final results.

Shares fell more than 12% as the group said trading had failed to pick up since October due to the contract delays, capping a "disappointing year".