Jarvis admits a further £8.6m loss after audit of financial statements
An audit of Jarvis's accounts for the year ended 31 March 2004 has revealed a further loss of £8.6m. The auditors said that loss before tax now stood at £250.5m, not £241.9m as stated in the unaudited results.
The extra loss arose principally because the auditor recommended that income generated from two PPP joint venture transactions be recognised in the current financial year, rather than in last year's results.
Jarvis received backing form its banks when its huge preliminary loss was announced last month. Analysts predicted that the firm will sell off assets to lighten its debt burden. It is expected to dispose of its Tube PPP stake and pull out of contracting. It is looking for partners to take over the construction elements in its current contracts.