Downturn in rail contract awards and exit from construction activities blamed for turnover drop
Rail engineer Jarvis has reported a loss of £21.7m in its full year results to April.
The figure was a narrowing from the £51.3m loss suffered last time; although operating profits before non-recurring costs were also down to £3.9m from £10.5m the previous year. The company said this reflected a downturn in rail contract awards, alongside the exit from construction activities.
Turnover dropped 13% to £306.7m, down from £353.8m last year.
Executive chairman Steven Norris said that despite the results the turnaround strategy at the troubled company was very much on track. He said: “Jarvis has been able to achieve some significant milestones in the business strategy laid out in our AGM statement last year, despite an industry wide downturn in rail and plant volumes in the period.”
Over the past year, Jarvis has sold its loss making Prismo Road Markings business, and its share in the Accord Jarvis joint venture. It has launched a rail freight business, Fastline Freight, as part of its strategy to grow in the rail sector following its exit from construction.