Jarvis says it needs to complete the £110m sale of its stake in Tube Lines otherwise it will cease to be a going concern in the new year.
The support services company should have announced its half-year results yesterday but it issued a statement instead saying trading was deteriorating, it had a lack of cash and refinancing was urgent to avoid collapse. Jarvis urged shareholders to agree the sale of some property interests to raise £25m to boost working capital. The shares fell 2p to 9.75p. Work has already stopped on many of its PFI contracts including a £30m project to rebuild part of the Whittington Hospital, in north London.
Meanwhile, Mowlem issued a profits warning but insisted its future was safe. It is expected to plunge into the red at the full-year stage. The company said it would make a £15m writedown against the carrying value of several construction contracts. Simon Vivian, chief operating officer, takes over as chief executive at the end of the year from Sir John Gains.
References: Financial Times 07/12/04 page 1, page 26 (Lombard), page 30, The Guardian 07/12/04 page 18, The Times 07/12/04 page 38 (Need to know), page 39 (Bet of the day), page 40, page 51 (Tempus, The Day’s Big
