Shares in rail services group rise 6% on news of contract win
Shares in Jarvis rose 6% after the rail network services group won a £91m infrastructure contract.
The York-based firm has refused reveal the name of the client, but said an initial batch of the work will be worth £55m, with a second optional phase worth £36m.
The first batch will be carried out during the financial year starting April, whilst the second batch will commence in April 2011. The news immediately bumped up Jarvis’s share prices by 6.25%.
Andrew Nussey, an analyst at KBC Peel Hunt, said: “The contract is good news for sentiment after a very challenging 12 months for Jarvis. We have Jarvis down for group revenues of £234m for fiscal 2011 and we anticipate some growth within that, helped by this contract.”