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Jarvis plc Interim Results 26 November 2009. 2 Strategic Highlights Continued focus on Rail, Plant and Freight Difficult trading conditions in first half.

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Presentation on theme: "Jarvis plc Interim Results 26 November 2009. 2 Strategic Highlights Continued focus on Rail, Plant and Freight Difficult trading conditions in first half."— Presentation transcript:

1 Jarvis plc Interim Results 26 November 2009

2 2 Strategic Highlights Continued focus on Rail, Plant and Freight Difficult trading conditions in first half due to low rail volumes and consequential volume reduction in plant Downsizing following Network Rails decision to reduce plain line volumes by 30% is now largely complete Focus on business development has produced increased bidding activity with Network Rail and potential new clients Improved Health and Safety performance with the Contract Accident Frequency Rate (AFR) now at 0.11, below Network Rail target of Accommodation Services – encouraging continued improvement

3 3 Group Financial Highlights * From continuing operations, before exceptional items

4 4 Group Revenue Analysis *2008 significantly impacted by high volume of West Coast Modernisation work

5 5 Revenue Analysis - Rail -Track Renewals lower than last year due to Network Rail reducing plain line volumes -The completion of the West Coast Route Modernisation projects accounted for the lower volume in Enhancement Projects -Electrical Projects continue to perform well -Successfully commissioned multi-disciplinary projects at Lugton Loop and Stoke

6 6 Revenue Analysis - Plant - Reduced revenue as a direct result of the reduction in national rail volumes and completion of West Coast Route Modernisation programme - OTM secured a one year extension to national contract until April Freight performed in line with expectations and secured an extension to its E.ON contract until 2015

7 7 Revenue Analysis – Accommodation Services -Trading ahead of expectations mainly due to settlement of historic claims - Encouraging progress on benchmarking

8 8 Group Segmental Profit Analysis* 2009 £m 2008 £m 2009 % 2008 % Rail(0.6)10.2(0.9)6.7 Plant Accommodation Services1.4(0.2)5.2(0.9) Central costs(4.3)(5.4)(3.7)(2.7) Total(0.9)5.9(0.8)2.9 * From continuing operations, before exceptional items

9 9 Exceptional Items 2009 £m 2008 £m Restructuring costs(2.3)(1.8) Proceeds from lease termination-1.7 Total(2.3)(0.1)

10 10 Net Debt 2009 £m 2008 £m Cash Debt due within one year(2.4)(14.8) Debt due after one year(22.7)(24.0) Total(22.3)(34.6) Debt facility extended to 31 January 2011

11 11 Rail Trading continues to be difficult due to low volumes Concentration on business development and the work winning process Improved bid volumes for both Network Rail and new potential clients give confidence of volume improvements Operational and safety performance improved Lugton Loop - major multi disciplinary project – commissioning successful and now nearing completion on schedule Stoke – major multi disciplinary project successfully and safely delivered on time Rationalisation and cost reductions throughout the business have created a more competitive environment

12 12 Plant (Fastline) Plant has experienced low volumes driven from Rail business On Track Machines (OTM) performed well. Small Plant performed in line with reduced volumes and restructured accordingly Specialist Plant showed improved performance through innovative efficient processes Operational improvements in Transport enabled provision of higher margins - performed well considering market conditions Downsizing resulting from Network Rails decision to delay works is complete

13 13 Freight E.ON contract performing well operationally E.ON has extended the contract until December 2015 Volumes remain low due to general economic conditions Operational efficiency is improving Further business opportunities as market conditions improve

14 14 Accommodation Services Encouraging continued progress Excellent progress in resolving historic commercial claims Portfolio remains as 24 contracts of which 22 are long term pfi Guaranteed long term income streams

15 15 In summary Strategy remains to focus on Rail, Plant and Freight. A very challenging trading environment with continued low volumes in Rail and Plant Focus on safety and operational improvements Rationalisation and cost reduction programme largely completed Focus on business development and the work winning process resulting in increased bidding activity Encouraging level of bid opportunities outside Network Rail Prospects beyond 2009/10 look more promising


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