Qualified advisers answering your
Financial Questions
call 0800 092 1245

Is Jarvis the first victim of government spending cuts?

The rail maintenance group Jarvis, once one of the U.K.'s largest construction companies, has today filed for administration after the company's debt situation became intolerable and secured creditors appeared to withdraw their support. The shares were suspended at 9.4 pence which gives the company a market capitalisation of just £20 million leaving the battered remains of a once prosperous operation.

It is believed that a move by Network Rail to defer track renewal prior to the arrival of new equipment was the final nail in the coffin for the company although there have been other issues regarding cost overruns and delays in new contracts. Only last month we saw the company lower profit forecasts for the current year although the company had appeared to secure the support of bankers and secured creditors. However, over the last few days it has become apparent that long-term support for the company was waning and administration was left as the only viable option.

Whether Jarvis will be the first of many victims of government spending cuts remains to be seen but there is no doubt that despite what the Chancellor mentioned in the budget yesterday, about increasing public sector investment, cuts are coming through and they are hurting many companies.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details