Jarvis unveils survival plans
Beleaguered engineering group Jarvis unveiled its plans for survival today after securing the support of its lenders for another eight months.
The strategy emerged as Jarvis said it had fallen £246.7m (€371.5m) into the red because of £100m (€150.6m) of losses on construction contracts in its accommodation services arm and write-downs on the value of its businesses.
As part of terms agreed with lenders, Jarvis will focus on UK rail activities and local authority services while scaling back accommodation services. It will sell off non-core activities and take out up to £30m (€45m) of costs.
A lending group – led by Barclays and Royal Bank of Scotland – will now provide £25m (€37.6m) of additional banking facilities and offer continued support through to March 25. Banking covenants had been due to expire today.
Jarvis chief executive Kevin Hyde said: “This has been a difficult year for the group and the results are disappointing.
“Our recovery strategy is designed to develop a simpler, leaner and more cash generative business that is sustainable in the long term.”
