Contractor Jarvis has today revealed it has collapsed into administration following a plunge in rail and plant work.
It said the company had been impacted by economic conditions generally and, in particular, the very considerable reductions in rail and plant work volumes, making trading conditions “difficult”.
It first alerted investors to its concerns in an interim management statement in February. Since then it said the board had been focussed on improving the financial position and the long-term viability of the Company for the benefit of all of its stakeholders.
But it said that the successful achievement of this goal depended upon the continued support of key customers such as Network Rail and the ability of the company to win new work. Its recent success in being awarded Chiltern Railway’s £55M Evergreen 3 Contract was therefore encouraging, it said, but was too little too late.
The company said that following negotiations with its secured lenders, it has today become clear that sufficient support will not be extended to the company to enable it to continue trading as a going concern.
As a consequence, the directors had no option but to take steps to place the companyinto administration, and to request that trading in its shares be suspended with immediate effect.
In February chairman Steve Norris said the firm had hoped it at weathered the storm.
The company had high hopes for its Slinger track renewal system, which it said has replaced 705 years of track in under 21 hours, and will be attractive for Network Rail’s ongoing drive to reduce possession times.