Jarvis plc Financial Results

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Jarvis plcFinancial Results

• July 2009

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Strategic Highlights

• Richard Entwistle to retire at September AGM
  succeeded by Stuart Laird currently Chief
  Operating Officer
• Second half impacted by Network Rails decision
  to delay works and impact of global economic
  downturn.
• Successful completion of all West Coast works,
  especially the Rugby contract.
• Overhead reduced in line with plan.
• E.ON coal haulage contract added important new
  business and working well. Extension to contract
  awarded until December 2015.
• Existing working capital facility extended.
• Safety Accident Frequency Rate (AFR) 0.18.

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Group Financial Highlights
From continuing operations, before exceptional
items
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Group Revenue Analysis
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Revenue Analysis - Rail

• - West Coast modernisation projects completed on
  time
• Busy and productive period for Electrical
  Projects Group and Scottish projects business
• Decline in rail enhancement volumes H2 following
  successful completion of West Coast projects

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Revenue Analysis - Plant

• Strong performance in OTM integral part in
  successful delivery of rail enhancement projects
• Small Plant benefitted from higher rail volumes
  in H1
• E.ON coal haulage contract performing well

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Revenue Analysis Accommodation Services

• Performance improved consistently throughout the
  year
• Loss making FM contracts exited October 2007 and
  one further contract disposed during the year

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Group Segmental Profit Analysis
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Exceptional Items
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Taxation
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Defined Benefit Pensions
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Net Debt

• Debt facility subsequently extended to 31 January
  2011

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Rail

• Performed well but trading in the second half
  suffered as a result of Network Rails
  announcement to delay work.
• Electrical Projects Group (EPG) achieved a 45
  growth in revenue.
• Scotland (strc) also performed well.
• London North East (LNE) Integrated Management
  Team (IMT) achieved the targets necessary to
  secure a 4 year extension to the contract (until
  2014).
• Headcount reduction to reflect lower volumes in
  the latter part of the year were initiated at
  pace.
• Despite reduced volumes in the coming year, the
  prospects thereafter look good.

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Plant (Fastline)

• Plant has had a mixed year.
• On Track Machines (OTM) performed well.
• Small Plant performed well.
• Specialist Plant did not meet expectations
• Transport performed poorly as a result of reduced
  volumes in Rail, the economic climate and low
  external demand.
• Network Rails decision to delay works will have
  impact in 2009/2010. We have already commenced
  downsizing.

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Freight

• Intermodal (containers) business closed in March
  2009 following massive reductions in import
  volumes due to global economic conditions.
• E.ON coal contract started well and reached full
  capacity by November 2008. Progressing well.
• E.ON has extended the contract until December
  2015.

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Accommodation Services

• Another year of excellent progress.
• Disposed of one further contract.
• Now consists of 24 contracts of which 22 are long
  term PFIs.
• Benchmarking process underway on many of the
  contracts.

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In summary

• Strategy remains to focus on Rail, Plant and
  Freight.
• Network Rails decision to delay works and
  current economic conditions created a difficult
  trading environment in the second half and this
  is expected to continue through 2009/2010.
• Beyond 2009/2010 the prospects appear much more
  promising.
• We will start to look at international
  opportunities.
• In Freight, despite the short term difficulties,
  we believe that the longer term prospects are
  positive.