DESPITE increasing turnover by more than 77%, contracting group Jarvis has reported a 6.6% drop in pre-tax profits due to industrial action and payment disputes with Railtrack over the past year.
Jarvis posted its preliminary results on Tuesday declaring taxable profits of £34.4M for the 12 months to 31 March - down from £36.7M. Turnover soared during the year from £355.2M to £627.9M, boosted by the acquisition of a track renewals business last year and a first-time contribution from Streamline Holdings, acquired last year.
The company says profitability has been affected by a dispute with the Rail Maritime & Transport Workers' Union that ate a £9M hole in profits (NCE 15 April).
The dispute was resolved earlier this year but it also blames Railtrack for deferring renewals work and disputed payments, calculated to be worth £12M. Chief executive Paris Moayedi explained that Jarvis had also not had time to resolve contractual costs with Railtrack on a track renewal programme, RT16.