Jarvis FD resigns amid profits warning
Embattled property and construction company, Jarvis, has announced the resignation of its group finance director as it warned of losses in its accommodation services arm.
Link: Jarvis in PFI image overhaul
Robert Kendall, group finance director, resigned with immediate effect yesterday and has been replaced by Alistair Rae, a KPMG-trained qualified accountant.
His resignation came as Jarvis said it now expected to make a £5m loss on its accommodation services arm, instead of an expected £5m profit, the result of overruns on construction costs for a number of the refurbishment contracts.
It also announced that it would take an exceptional £40m charge following the conclusion of negotiations on exiting rail maintenance activities with three maintenance contracts handed back at the beginning of this month.
The exceptional charge relates principally to the write off of pension credit and consequential redundancy and other costs.
It is also to review its dividends policy.
Jarvis chief executive Kevin Hyde said Kendall, who was group FD for the last three years, had agreed to assist in ‘an orderly hand-over of the finance function’ to Rae.
Jarvis uses the name Engenda when bidding for PFI deals.