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March 25, 2010

Jarvis goes into administration

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BRITISH infrastructure contractor and railfreight operator Jarvis announced on March 25 it had gone into administration, citing a significant reduction in rail renewal work as a contributor to the company's worsening financial performance.

In a statement Jarvis said that following negotiations with secured lenders, it had become clear that there was insufficient support for the company to continue trading.
 
Last monthJarvis said it expected to end the financial year with losses of around £8 million, including £3 million restructuring costs. 
Jarvis' railfreight subsidiary Fastline has a contract with electricity company E.on to move coal from ports to power stations in central England until December 2015. Fastline had closed its intermodal operation in March 2009 due to the recession.

The Jarvis Rail engineering business recently won a £55 million contract to upgrade part of the Chiltern main line, but the company admitted last year that the reduction in renewals by infrastructure manager Network Rail had hit its revenues hard.
 
 
Photo: Jarvis railfreight subsidiary Fastline has been successful in securing a share of Britain's lucrative coal market in recent years.
 
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