Rail specialist reports increased levels of visibility in rail sector

Rail specialist Jarvis has said it is cautiously optimistic about results for the year ended 31 March 2009.

In a trading update the group said it was “not immune” from the wider credit crunch but that its overall performance had been solid.

Higher fuel costs and the general economic downturn had hit its plant and freight divisions while it said it was benefitting from “increasing levels of visibility” in the rail sector.

The consensus forecast for this year is pre-tax profit of £11m on turnover of £305m.

In May the company announced a return to the black after making a loss of £21.7m in 2006.

Jarvis has suffered from reputational and financial difficulties since the Potters Bar train derailment in May 2002, for which it accepted liability on behalf of the industry.