Rail specialist contractor Jarvis has posted a modest loss of £3.6M for the year, following a modest profit of £4.4M last year.
The results were still ahead of management expectations for the year, but the company is actively reducing its reliance on Network Rail as its deferment of maintenance spend has hit the business hard.
Jarvis Chairman Steven Norris said: “As we have said previously, conditions during this financial year will be difficult but due to the hard work and determination of everyone involved we are able to report a first half performance slightly ahead of expectations. It has not been without its pain.
“We have undergone a huge restructuring programme which I am pleased to say is now largely completed and I thank all our colleagues in the business at every level for their support throughout this time.”
“We have placed particular emphasis on improving our business development capabilities and developing relationships with new customers. We are now beginning to see the fruits of that exercise both with Network Rail and other customers and we are confident that this will prove successful in the award of new contracts in the near future. Reducing our dependency on Network Rail is a key objective of the business and an important way of ensuring we delivery future volume improvements and a healthier business as a result.”
The group’s turnover also fell from £203M last year to £114.7M this year, with £2.3M spent on restructuring and redundancies.
Shares in Jarvis fell some 7% in early trading.