Troubled contractor will focus on road and rail renewal and steer clear of construction contracts in future.
Jarvis has revealed it will not take on any new construction contracts, after recording a pre-tax loss of £246m in its end of year results.
The ailing firm’s losses compare to a pre-tax profit for the year ending 31 March 2003 of £62.7m.
The firm will in the future focus on its road and rail renewal businesses and part of its accommodation services network.
A spokesman for Jarvis confirmed that the company would not take on any new construction work and would be “scaling back” its accommodation services activities. Construction work on any new PFI work will not be handled by Jarvis.
The spokesman added that Jarvis would also be selling off some its interests. This is set to include its European road business and its stake in the tube PPP business.
Jarvis chief executive Kevin Hyde said the firm had acted on a number of challenging issues in the past few months.
He said: “This has been a difficult year for the Group and the results are disappointing.
However, we are pleased to announce the continued support of our lenders and I am grateful to them for their constructive attitude, which allows us to complete the recovery strategy we embarked on some months ago.”
Hyde added that the recovery strategy was designed to develop a simpler, leaner and more cash generative business that is sustainable in the long term.
Jarvis’ share price fell 18p to 37p on the news but rallied to 46p later in the morning.
