Jarvis shares drop as £5m loss predicted

RAIL and plant firm Jarvis yesterday braced investors for heavy losses as spending delays from Network Rail keep up the squeeze on the business.

The company's profit warning comes after a "very considerable reduction" in rail and plant work as the network operator puts back track-renewal investment.

Jarvis predicts a 5 million operating loss this year, although more financial pain – including a further 3m in restructuring costs – will mean an even deeper slide into the red in the group's final results.

Shares dropped by 12.2 per cent, or 1.5p, to end the day at 10.75p following the warning.