Jarvis PLC
28 January 2004



Update on Trading

In November we announced that the first half of the year had seen a lower level
of contracts awarded to the Accommodation Services division which impacted the
first half results.  This division has recently seen a considerable improvement
in the level of appointments as preferred bidder and over the last two months,
we have been appointed preferred bidder for four new PFI projects.  However, all
four took longer than anticipated to reach preferred bidder stage,  thus
incurring additional bid costs.  We now believe these contracts are unlikely to
reach financial close until next financial year and hence recovery of the bid
costs will be deferred.

A further six PFI projects where Jarvis is shortlisted were expected to reach
preferred bidder stage by January this year.  They have not yet done so.  As a
result of current delays, these projects will now also incur additional bid
costs beyond those previously anticipated.

Similar delays have occurred with four further UPP contracts where decisions
have been delayed.

The overall impact on the division of these delays in the current financial year
is expected to be approximately £12m.  However, next year we expect to see a
significant recovery in the division's profitability from the level in the
current year.

In order to reduce the risk in this business, the Board has instigated a
programme to reduce bid costs by some £6m.  We are also adopting a more
selective approach to bidding and are consolidating the separate projects,
construction and facilities management operations into one integrated business.
This will have the benefit of streamlining the bidding, project management,
construction and facilities management processes and reducing costs.

In addition, in the light of progress to date, the Board regards it as prudent
to write down Jarvis' investment in its primary health joint venture by £1m.

The remainder of Jarvis' activities are performing according to expectations.
Excellent progress is being made on discussions with Network Rail both on
exiting rail maintenance and on realising the rail maintenance receivables and
shareholders will be updated when these discussions are completed.



For further information, please contact:

Jarvis plc
Mike Tate
Tel. +44 (0)20 7462 6670

Tulchan Communications
Andrew Honnor
David Trenchard
Tel. +44 (0)20 7353 4200




                      This information is provided by RNS
            The company news service from the London Stock Exchange

Investegate takes no responsibility for the accuracy of the information within the site.

The announcements are supplied by the denoted source. Queries about the content of an announcement should be directed to the source. Investegate reserves the right to publish a filtered set of announcements. NAV, EMM/EPT, Rule 8 and FRN Variable Rate Fix announcements are filitered from this site.

     © 2012 Financial Express. All rights reserved.