Group's full year profit falls below market expectations after slow trading in first half of year
Jarvis has said today it expects to improve its profitability in the second half of the year but added that full year profit would be below market expectations because of slow trading in the first half
The group also announced that its construction activities would soon be at an end.
Speaking at the company’s annual general meeting today chairman Steven Norris said that although he expected recovery in the second half, this would be dependent on the awards of new rail contracts in its plant and rail divisions.
Earlier this year Jarvis posted a pre-tax loss of £56.6m for the 12 months to 30 March, compared to a pre-tax loss of £391m for the previous year.
The chairman also revealed that Jarvis had appointed its financial adviser, Close Brothers Corporate Finance to work with the management on “taking appropriate action on underperforming business units.”
Morris said the plant and rail business continue to perform well but it still looking to sell parts of its road division.
The company’s construction activities also nearing closure with only one project left to complete. Jarvis decided over a year ago to exit construction as part of its reorganisation.