Company will reduce operating cost in response to decline in work from Network Rail
Infrastructure specialist Jarvis has said it plans to cut costs following a decline in work from Network Rail.
In a statement to the stock market, the infrastructure and support services firm said it would reduce operating costs to reflect lower levels of activity from the network operator.
Operating margins in 2009/10 were likely to be “adversely impacted”, it added.
Executive chairman Steven Norris said: “The company has performed strongly this year as the various strategic initiatives taken over the past three years to reshape the business have taken effect.
'The Board is therefore naturally disappointed that Network Rail has decided to adjust the phasing of its five year track renewals programme. This will clearly result in significantly less work in the next financial year for our Rail and Plant businesses.”
But the firm said it was confident about the long-term rail opportunities, with £4bn investment in track renewals planned for the next five years.
It performed in line with management expectations in the third quarter of the financial year and its facilities management business saw an improvement in performance, it said.