Rail maintenance group Jarvis has announced a pre-tax loss of £6.3m following significant delays to Network Rail contracts during the year ending 31 March 2009.
The York-based company said that cutbacks to rail projects had caused the group to downsize its business at a restructuring cost of £8.1m.
A decline in freight container volumes had also affected the group’s operating profit, which was at £7.7m, down from £9.2m in the previous year.
However, a strong performance in the first half of the year increased the group’s revenue to £345.8m compared with £321.9m in 2008. This was largely due to revenues generated by the West Coast Main Line project.
Looking ahead, the group said its full-year results were in line with expectations and that conditions for the coming year appeared positive.
Steven Norris, chairman, said: ‘The current economic conditions and Network Rail’s decision to delay works created a difficult trading environment in the second half of the year under review and this is expected to continue through 2009-10.
‘The prospects beyond that appear much more promising. Our major client Network Rail has a huge capital works programme, which we understand is fully funded until at least 2014 and that funding is substantially greater than any prior period.’