Jarvis plc Interim Results

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Jarvis plcInterim Results

• 27 November 2008

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Strategic Highlights

• Strong first half performance in Rail
• Heavy duty and Small Plant performed well
  mirroring Rail volumes
• Reduced transport demand
• Successful roll out of E.ON freight contract
• Intermodal Freight low import volumes
• Accommodation Services continuing to improve
• Achieved overhead reduction target
• Strategic review significant interest, detailed
  discussions but no formal offer as a result of
  current economic conditions
• Continued strategy to focus on Rail, Plant and
  Freight

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Group Financial Highlights
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Group Revenue Analysis
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Revenue Analysis - Rail

• - Integration of 6 to 4 track renewals
  contract award successfully completed
• Major enhancement projects Rugby, RS12 and
  Airdrie- Bathgate
• Increased Category C signalling workload

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Revenue Analysis - Plant

• -MPV fleet maintenance and operation for Network
  Rail in OTM
• Slinger utilisation slightly down in Specialist
  Plant
• Small Plant boosted by Rail volumes
• E.ON freight contract start up in Transport

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Revenue Analysis Accommodation Services

• Loss making FM contracts exited October 2007 c.
  15m annualised revenue reduction

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Group Segmental Profit Analysis
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Exceptional Items
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Taxation
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Net Debt
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Movement in Net Debt
Unaudited extract from group management accounts
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Rail

• Strong volumes in the first half primarily driven
  by the Rugby contract
• 6 - 4 transfer completed and additional area
  (East Midlands) now bedded in
• ORR Determination for Control Period 4 (2009
  2014) confirms massive increase (more than double
  CP3) in enhancement spend
• The Track Safety Accident Frequency Rate is now
  0.21

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Plant

• Heavy duty plant performance strong in first half
• Small Plant demand mirroring increase in Rail
  revenue
• Continuing to sell surplus On Track Machines
• OTM contract NWR wish to extend existing
  contract until March 2010
• Tender for new 7 year OTM contract from April
  2010 until 2017
• NWR has confirmed requirement for additional
  tampers
• External demand in the Transport fleet has reduced

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Freight

• E.ON contract successfully launched and
  performing well
• All 5 Class 66 locomotives and 94 coal hopper
  wagons operational now
• Container business suffering from lower imports
  because of economic downturn

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Accommodation Services

• Significantly improved performance in the year
• No longer a problem business
• Many contracts entering the benchmarking period
• Recruited directly employed management team
  rather than consultants

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In summary

• Strategy remains to focus on Rail, Plant and
  Freight
• Business has continued to improve
• Overheads down to a realistic level
• Long term prospects look promising given
  Government/Network Rail planned expenditure
  programme for the future