2007
Jarvis Annual report and accounts  Contents
Jarvis plc Annual report and accounts 2007 1
Financial Highlights
For the period ended 2 April 2007
% 2007 2006
change £m £m
Revenue* (13.3) 306.7 353.8
Operating profit before non-recurring costs* (62.9) 3.9 10.5
Loss before taxation 76.1 (14.1) (59.1)
Net cash used in operating activities 37.8 (35.2) (56.6)
Net debt (6.3) (23.6) (22.2)
Basic and diluted loss per share* 79.9 (7.5)p (37.3)p
*From continuing operations.
01 Financial Highlights
02 Chairman’s Statement
04 Chief Executive’s Statement
06 Financial Review
09 Operating Review
13 Investor Information
14 Biographies
16 Corporate Governance Statement
22 Corporate Social Responsibility
27 Directors’ Remuneration Report
32 Directors’ Report 
35 Independent Auditors’ Report
36 Consolidated Income Statement
36 Consolidated Statement of Recognised 
Income and Expense
37 Consolidated Balance Sheet
38 Consolidated Cash Flow Statement
39 Notes to the Consolidated Financial Statements
66 Company Balance Sheet
67 Notes to the Company Balance Sheet 2 Jarvis plc Annual report and accounts 2007
Chairman’ s Statement
Jarvis has been able to achieve some
significant milestones in the business
strategy laid out in our AGM statement 
last year, despite an industry wide downturn
in rail and plant volumes in the period. We
have divested ourselves of unprofitable and
distracting peripheral activities in order to
concentrate on our core strengths and
market leadership in rail and plant. During 
the period we completed the sale of our road
markings business to Ennis Paint Inc.. We
have now agreed the termination of the most
unprofitable of our Facilities Management
contracts, so that the remainder of our FM
business will thereafter be profitable at the
contract level, and we have successfully
completed the remaining Construction
contracts, and defects on old contracts
are largely finished.
On 2 April 2007 we successfully completed 
a £25m Placing and Open Offer. We have
accordingly adopted this as our reporting 
date to account for this transaction in the
period. These new funds enable us to do
three things. Firstly, to deliver arguably the
most important component of our forward
strategy, namely further significant
reductions to our cost base reflecting the
new shape of the business; secondly, to 
fund the divestment of the unprofitable 
FM contracts; and thirdly to invest in the
innovative technology and equipment 
which underpins our future. 
Jarvis has always been committed to the 
use of technology and mechanisation of
processes on the railway which have
previously been done essentially by manual
labour. This remains our key competitive
advantage, and we continue to innovate for
the benefit of Network Rail and our other
clients such as Transport Scotland, Metronet,
BAM Rail in Holland, and others. Finally, I am
pleased to report that during the period we
launched our rail freight business – Fastline
Freight – which has shown encouraging
growth since it commenced operations 
and continues to expand.
Financial results
We told the market in the period under
review that the effect of the slow build up 
in rail contract awards would affect our
financial performance. Revenue for the
period from continuing operations was
reduced to £306.7m (2006: £353.8m),
reflecting this downturn in rail contract
awards as well as the exit from construction
activities. The Group operating profit before
non-recurring costs of £3.9m (2006: £10.5m)
was also impacted by reduced Rail and Plant
volumes. Non-recurring costs of £13.4m
(2006: £1.8m) include the termination costs
of exiting the loss making FM contracts 
and the cost of the overhead reduction
programme to date. The loss before taxation
was £14.1m, much reduced from the
previous year (2006: £59.1m). The loss for
the period after accounting for discontinued
operations was £21.7m (2006: £51.3m), in
line with the forecast made at the time of the
Placing and Open Offer. Net debt at the
period end, after accounting for the receipts
of the Placing and Open Offer was £23.6m
(2006: £22.2m).
Dividend
In light of these results the Board does not
recommend the payment of a dividend.
Rail and Plant
As we have previously mentioned the slow
pace of new contract awards by Network 
Rail industry-wide has impacted our business
performance during the period. However, 
the volume of activity is now, as anticipated,
increasing and work has commenced on
We could not continue to deliver the
successful turnaround of this company
without the wholehearted and committed
effort of our people. Jarvis plc Annual report and accounts 2007 3
contracts worth £65m awarded in January, 
to provide Category C signalling services 
and Phase 2a works at Rugby station – one of
the most significant redevelopments on the
national network. We also won a West Coast
line speed enhancement project between
Summit and Abington, in Scotland. Over the
Christmas period, one of the busiest times on
the railway, our teams north and south of the
border delivered the largest volume of project
work completed by any contractor, and did so
efficiently and safely. We delivered a wide
range of multidisciplinary projects, including
approximately 5,000 composite yards of track
renewals. Integral to our success was close
collaboration with Network Rail on access,
possession times and equipment availability.
Excellent co-ordination by all staff involved
and a great team effort within Jarvis Rail and
Fastline enabled this to happen. This increase
in rail work also has a positive effect on the
Group’s trading performance in the current
period.
Track renewals
In December last year, Network Rail
announced that they did not intend to take
renewals in house. This was welcome news
for us and for the industry as a whole and
allows us to plan our future with greater
certainty. It also removes a cause of
uncertainty among current and potential
investors. Network Rail also stated that in
order to accelerate the pace of productivity
improvements they plan to reduce the
number of track renewals contractors
operating in Integrated Management 
Teams (IMTs) from the current six to four.
Although I should note that neither the 
major enhancement projects on which we
are engaged nor the electrical and signalling
services we provide are within the scope of
this review, we do nonetheless regard this 
as a significant opportunity to demonstrate
our “best in class” credentials. Whilst we
would have a perfectly viable future outside
the successful quartet, we are ensuring 
that we rise to the challenge of proving our
commitment to deliver the best possible
service to our key client. At the time of
writing we are performing well in respect 
of both safety and volume – two critical
performance indicators. This is indicative of 
a Rail and Plant operation which is genuinely
keen to deliver what clients want, when they
want it. The announcement of the successful
four contractors is expected to be made in
August this year and we are focusing our
efforts on being one of them.
Accommodation Services
Thanks to the excellent work of Stuart 
Laird and his team the performance of our
Facilities Management business continues 
to improve in terms of both efficiency and
margin. This division encompasses our joint
venture with Herefordshire County Council,
our contract with Redcar and Cleveland
Borough Council and a number of individual
facilities management agreements in schools
and other similar public buildings generally
inherited from our previous PFI business.
This now represents all that is left of the
original Jarvis Accommodation Services
business and we are continuing to explore
ways in which we can optimise the value
generated in this market. 
Our people 
As ever the Board of Jarvis plc is acutely
aware that we could not continue to deliver
the successful turnaround of this Company
without the wholehearted and committed
effort of our people at every level within 
the business. We are immensely grateful 
to them all. They have all demonstrated real
commitment to the recovery of our fortunes.
It is sadly inevitable that in the process of
restructuring we lose hard working, loyal 
and competent friends and colleagues. 
In this context I would particularly like to
thank Adrian O’Shea, our Group Director of
Strategic Marketing and Planning, who has
left us to join Deloittes, for his significant
contribution to planning our recovery. 
Geoff Mason, our long-serving Group
Company Secretary, has also left us for new
challenges. Geoff has been quite outstanding
in his loyalty, assiduity and sound advice
throughout the whole process of
restructuring and business reconfiguration.
We thank them warmly and wish them both
every success in the future. Mark Akinlade 
is moving from his current role as Head of
Legal Services to assume the role of Group
Company Secretary and General Counsel.
Future prospects
During the coming year we will continue 
to work on the reduction of costs. We will
focus on our core businesses of Rail and
Plant, ensuring that wherever possible 
we offer innovative mechanised solutions 
to hitherto labour intensive rail operations 
and thereby deliver for our clients both
operational improvement and significant cost
saving. We will be making further investment
in our heavy duty specialist equipment,
including upgrading our switch and crossing
tampers and we are pursuing selective
international expansion opportunities. The
level of rail work has risen in recent weeks as
the Rugby project among others comes fully 
on stream and this improved workflow looks
set to continue. As I indicated in my letter
accompanying the recent Placing and Open
Offer, with the support of my Non-Executive
colleagues, to whom I pay tribute for their
continuing wise counsel, and under the firm
leadership of Richard Entwistle and his first
class team, I look forward to a year of
significant progress.
Steven Norris
Executive Chairman
11 June 2007 4 Jarvis plc Annual report and accounts 2007
Chief Executive’ s Statement
Financial restructuring
During the year to March 2006 the business
carried out a complex financial restructuring
which included a Debt for Equity Exchange
and a very expensive working capital facility. 
This was the very important first step in 
the recovery of the business. During this
financial period we have continued that
recovery process with the establishment of a
new asset backed working capital facility with
Burdale Financial Limited, a subsidiary of the
Bank of Ireland, and the raising of additional
funding through a Placing and Open Offer,
which we successfully completed on 
2 April 2007.
The £25m arising from the Placing and 
Open Offer will be used to fund the future
development of the business. 
Health and Safety
Health and Safety continues to be our
number one priority and we have once 
again performed well in the period. Our Rail
and Plant businesses achieved an Accident
Frequency Rate (AFR) of 0.23 accidents per
100,000 hours worked. In more literal terms
this would mean that one employee would 
only have one reportable accident every 
217 years.
During the period the Integrated
Management Teams (IMTs) at Glasgow 
and Peterborough have received awards for
achieving 730 days without any reportable
accidents. They have become two of only
three track renewals IMTs countrywide 
to reach this milestone – a tremendous
achievement.
Rail and Plant
During the period much of our time has been
focused on developing and implementing 
the business strategy, which now centres
around Rail and Plant. The emphasis is on 
the provision of innovative mechanised
services, which involves the development 
of techniques and bespoke equipment
designed to improve output and reduce 
risk to our workforce. Innovation and an in
depth understanding of customers’ current
and future needs is at the very heart of our
business. There are many examples of this,
the most recent being the completion of 
a major Switch and Crossing installation 
at Hunterston in Scotland in April 2007. 
We developed the modular techniques and
designed the bespoke equipment integral 
to the process. The initiative has received
much acclaim from our client, Network Rail.
Unfortunately, expenditure in the UK rail
market in the period was at lower levels than
anticipated in our areas of activity. This was
due to the completion of the West Coast
Route Modernisation Project and delays in
the awards of new projects which did not
start coming through until late in the period.
This impacted Rail and Plant volumes which
were significantly down on previous years
and resulted in a difficult trading period.
However, there were a number of notable
successes. We commenced our Freight
operation branded Fastline Freight in 
June 2006. We now transport containers
from Thamesport to Doncaster and
Birmingham using our three locomotives 
and have some significant opportunities 
in the pipeline.
The path is clear and the business continues 
to become stronger and more stable. Jarvis plc Annual report and accounts 2007 5
In the summer of 2006 our equipment 
was used in Europe for the first time. 
Our bespoke Rapid Ballast Excavator,
nicknamed “Mole”, excavated 26km of track
in 26 days as part of a track renewals project
for BAM Rail in Holland. The project has given 
the business much greater coverage in the
European market and this together with our
appointment of an experienced International
Director is yielding a number of enquiries. Our
approach is selective and controlled centring
around the use of our mechanised services
offerings.
Following our strategic decision to
concentrate on our best performing Rail 
and Plant businesses we decided to sell the
poorly performing Prismo Road Markings
business and our share of the Accord Jarvis
Limited joint venture. We completed these
transactions in December 2006 and February
2007 respectively. The residual element of
the Roads division Hereford Jarvis Services
Limited (HJS), our joint venture with
Herefordshire County Council, is now
managed as part of the FM business. 
I am pleased to report that HJS has been
transformed and is now trading profitably.
Accommodation Services
The business has made excellent progress
during the period. The FM business has
stabilised and the exit from Construction is
well on the way to completion.
In Construction we received a completion
certificate for the last remaining contract,
Whittington Hospital, in October 2006. We
are assisting with the project management 
of a second phase of Whittington Hospital
but are only providing management support
and this is expected to cease in the autumn 
of 2007. We also completed a large and
planned defect rectification programme in
the summer of 2006 which cleared the vast
majority of outstanding defects on the old
Construction contracts. There are still 
some defects to complete on the remaining
contracts which we will attend to during the
course of the coming year as the access
opportunities arise.
The termination of the three major loss-
making FM contracts, which we announced
on 4 June, will transform the FM business.
These contracts, together with a profitable
fourth contract in the same area,
necessitated a sizeable negative premium.
Although two loss-making contracts remain,
the overall FM business will now be profitable
at contract level and will require significantly
less management effort going forward. The
management team in this business has 
been significantly strengthened and during
the period we embarked on a major service
improvement programme supported by 
a consultant specialising in operational
effectiveness. This has had considerable
benefit and the business has stabilised.
The FM business now consists of 28
contracts, including HJS, of which 24 are
PFIs. We retain an equity interest in 7 of
these PFIs. The major proportion of the
portfolio is 16 schools projects. The other
projects include hospitals, training facilities,
local government offices and fire stations.
The future
We have a clear strategy and know precisely
what we need to achieve and have made
significant steps towards our goals during 
the period.
As we continue through the recovery 
process there is a great need to introduce
more appropriate management information
systems, to further reduce our costs to match
the size and shape of our new business and
indeed to further improve the skillset in
certain areas to match our mechanised
services approach. This is a difficult process
but will result in the business being stronger
and in much better shape to capitalise on 
the opportunities ahead.
The volumes of work in Rail have started 
to pick up. The awards that we received in
January 2007 for Rugby remodelling, the
Category C framework agreement and the
LL25 line speed enhancement project in
Scotland were evidence of this. Network 
Rail, our main client, has also stated that it
plans to significantly increase expenditure 
on enhancement projects over the next 
two years. This is to facilitate the growth
expected from both passenger and freight
services in the UK. Clearly, this is very
positive news for the UK Rail industry 
in general.
The Plant business is invariably linked to Rail,
in that as UK Rail volumes pick up so do Plant
volumes. However, our strategy is also to sell
our services overseas and we plan to push
very hard to increase our overseas activity in
the year. We also need to continue to develop
innovative solutions to service the needs of
the Rail market. To this end, we have a small
dedicated team focussing on bringing our
developments to market and where
appropriate securing protection for our
intellectual property. The Freight business
has started well. The next steps are to further
develop the intermodal container service.
There is still much to do, but as previously
stated the path is clear and the business
continues to become stronger and more
stable.
Richard Entwistle
Chief Executive
11 June 2007 6 Jarvis plc Annual report and accounts 2007
Financial Review
KPIs for 2006-07 are shown in the table
below, along with prior year comparatives.
2007 2006 
Revenue from
continuing operations £306.7m £353.8m
Operating profit before 
non-recurring costs £3.9m £10.5m
Operating margin 1.3% 3.0%
Basic loss per share –
continuing operations (7.5)p (37.3)p
Operating cash flow (£35.2m) (£56.6m)
Net debt £23.6m £22.2m
The financial metrics are as reported in the
Consolidated Financial Statements.
Non-financial key performance indicators
are as reported in the Corporate Social
Responsibility report on pages 22 to 26.
Revenue from continuing operations for the
period to 2 April 2007 reduced by £47.1m to
£306.7m, reflecting the delay in the
awarding of some rail projects, the reduction
in West Coast Route Modernisation Project
volumes in the Rail and Plant businesses
(following the completion of that project)
and the conclusion of the remaining
Construction contract.
The Group achieved a profit at the operating
level, before non-recurring costs, of £3.9m
(2006: £10.5m). The reduction in operating
profit versus 2006 was largely caused by
volume reductions and reduced margins 
in both the Rail and Plant businesses.
The loss per share has improved versus
2006, mainly as a result of significantly
reduced finance costs in the current period.
2006 net finance costs of £67.8m included
the costs of the Debt for Equity Exchange 
at £61.9m.
The operating cash outflow for the period
has fallen to £35.2m (2006: £56.6m),
principally because of the receipt of £21.7m
net procceds from the Placing and Open
Offer. Net debt remained close to previous
year levels.
Placing and Open Offer
A Placing and Open Offer of 38,485,241
ordinary shares was completed on 2 April
2007, generating £25m gross proceeds. 
The cash has been included in the Balance
Sheet after deducting directly attributable
share issue costs of £3.3m. The Group’s
reporting period has been extended to this
date to include this transaction.
Key performance indicators
The Group’s management use a range of
performance measures to monitor and
manage the business. Certain of these
measures are particularly important in
measuring our progress in creating
Shareholder value and are considered 
key performance indicators (KPIs). The 
KPIs measure past performance and also
provide information to allow us to manage
the business into the future. Revenue,
operating profit before non-recurring costs,
operating margin, EPS, operating cash flow
and net debt indicate the volume of work
delivered, the profitability and the efficiency
with which the profits have been turned 
into cash. 
Significant progress has been made during 
the period on the continuing operational
reorganisation of the Group. Jarvis plc Annual report and accounts 2007 7
Operational restructuring
Significant progress has been made 
during the period on the continuing
operational reorganisation of the 
Group including:
– disposal of the Prismo Road Markings
business, which has been treated as
discontinued;
– continued focus on becoming an
infrastructure services business with 
two core divisions, Rail and Plant;
– restructuring of the Accommodation
Services Division to achieve profitability;
– completion of the office move from 
London to Y ork;
– reduction of central overheads in line with
the size of the repositioned business; and
– refinancing of working capital facilities 
with consequent interest savings.
Disposals
On 1 December 2006 the Group sold
Prismo Road Markings Limited to Ennis
Paint Inc. for a cash consideration, net of
disposal costs, of £4.2m. The contracting
division of Prismo Road Markings Limited,
Prismo Contracting Services, had been
making significant losses for some time.
The parts of the business which were not
included in the sale were the Somerford
Equipment business and Herefordshire
Jarvis Services Limited. The Somerford
Equipment business has been transferred
to our Plant division and Herefordshire
Jarvis Services is now managed as part of
our Accommodation Services Facilities
Management business. 
On 27 February 2007 Jarvis completed the
sale of its 50 per cent holding in the Accord
Jarvis Limited joint venture for a cash
consideration of £0.9m.
Group cost savings plans
As a result of the plans to reduce central
costs, central overheads have been
successfully reduced from £29.2m in the
year ended 31 March 2006 to £20.1m in 
the period ended 2 April 2007.
Refinancing
Documentation for a £67m three year
committed and secured credit facility 
was signed in July 2006. The facilities 
were used to refinance the Group’s
outstanding facilities (with Deutsche Bank
AG,London Branch and Commerzbank
Aktiengesellschaft, London Branch) and 
to provide liquidity. The new facilities are
arranged by Burdale Financial Limited, the
secured asset-based lending subsidiary 
of the Bank of Ireland.
The new facilities are split into a senior
tranche of up to £55m and a subordinated
facility of up to £12m. The margin on the
senior facility is up to 3.75 per cent over
LIBOR while the margin on the
subordinated facility is 8 per cent over
LIBOR (rising to 10 per cent in certain
circumstances).
Non-recurring costs
The Group has incurred non-recurring costs
of £13.4m in the period (2006: £1.8m)
including £6.9m termination costs of
exiting the loss-making Facilities
Management contracts and, as part of the
overhead reduction programme, £4.6m of
redundancy costs. These costs have been
funded from the proceeds from the Placing
and Open Offer.
Finance costs
Net finance costs for the period ended 
2 April 2007 of £4.6m were significantly
lower than the previous year (2006:
£67.8m) and relate mainly to interest
payable on the financing facilities in place 
at the beginning of the period and the
replacement asset-based facility agreed 
in July 2006.
Taxation
Deferred tax balances for the comparative
year have been restated to reflect
recognition under IAS12 of assets and
liabilities arising from unused tax losses
eligible to cover taxable temporary
differences associated with pension
schemes surpluses. At 2 April 2007 the
Group recognised deferred tax assets of
£10.0m and liabilities of £11.2m in this
regard. At 2 April 2007 the Group had
£271.1m (2006: £342.2m) in tax losses
available to reduce tax payments in future
years, subject to continued taxable profits
in certain Group companies. However,
other than as detailed above, no deferred
tax assets have been recognised as the
realisation of the related tax benefit is
uncertain. The Group paid no corporation 
tax in the financial period. The tax credit 
for the period was £2.0m (2006: £5.4m).
Pensions 
The Railways Pension Scheme (RPS) and
the Streamline Pension Schemes are the
only material defined benefit schemes
operated by the Group. The IAS 19 surplus
on the RPS increased significantly during
the period to £36.4m (2006: £22.0m) as 
a result of strong performance of equity
investments and movements in underlying
actuarial assumptions. The IAS 19 deficit on
the Streamline Pension Schemes, which
hold a higher proportion of its assets in
bonds, was slightly reduced at £17.0m
(2006: £17.9m).
During the period the Group’s contributions
to these schemes was £4.2m (2006:
£2.8m) and included special contributions
to the Streamline Pension Schemes of
£1.0m (2006: £1.0m).
Financial risk management
The Group has a centralised Treasury
function whose primary role is to manage
funding, liquidity and financial risks. 
The Group Treasury Department ensures
financial risks are identified through:
– receiving regular, formalised reports 
from all operating divisions;
– review of operational results and executive
information, in particular each division’s
cash generation and usage and working
capital position; and
– involvement in, and review of the 
output from, the planning and forecasting
process.
In order to establish the Group’s funding
requirements the Group Treasury
Department monitors:
– regular cash flow forecasts prepared by 
the divisions;
– budgets and forecasts;
– actual trading results and resultant debt 
and balance sheet positions; and
– capital expenditure requests. 8 Jarvis plc Annual report and accounts 2007
Financial Review
If appropriate, the Group enters into
derivative transactions, principally
interest rate swaps and forward currency
purchases, to manage material interest 
rate and foreign exchange risks arising 
from the Group’s operations and its sources
of finance. It is the Group’s policy that 
no trading in financial instruments for
speculative purposes shall be undertaken.
The Group’s principal financial assets are
bank balances, cash, amounts recoverable
on contracts and trade debtors, which
represent the Group’s maximum exposure
to credit risk in relation to financial assets.
The Group’s credit risk is primarily
attributable to its amounts recoverable 
on contracts and trade debtors. Credit risk
is managed by monitoring the aggregate
amount and duration of exposure to any
one customer depending upon their credit
rating. The amounts presented in the
balance sheet are net of allowances for
doubtful debts, estimated by the Group’s
management based on prior experience
and their assessment of the current
economic environment.
John O’Kane
Group Finance Director
11 June 2007 Jarvis plc Annual report and accounts 2007 9
Operating Review
Overview of activities in the business
Jarvis Rail Limited (Jarvis Rail) is the railway
engineering arm of the business which has
maintained its role as a major provider of 
rail infrastructure works to the UK rail
industry, not only through the provision of
Plain Line track and Switch & Crossing (S&C)
renewals, as part of Network Rail’s Integrated
Management Teams (IMT), but also in
delivering some key enhancement 
projects nationwide.
Safety is critical for the business and the 
period saw the company continue to better 
the Accident Frequency Rate (AFR) target of
0.25 set by Network Rail. At the period end
the combined Jarvis Rail and Fastline AFR
stood at a highly creditable 0.23 for trackside
accidents, continuing the mission for 
zero accidents.
Revenue reduced in the period due to the 
late award and commencement of the 
Rugby contract on the West Coast Main 
Line (WCML). The expected release of the
Category C contract for signalling works 
also took longer than expected to conclude.
Scotland continued to gain project work
outside of its National S&C contract. This
work covered all disciplines in infrastructure
renewal.
The business has continued to strengthen 
its relationship with its major client Network
Rail and teamwork has been central to the
successes that were achieved during the
period. Network Rail continues to focus on
establishing “World Class” best practice 
and bring about efficiencies in the way it
delivers Plain Line and S&C renewals across
the country. Jarvis Rail actively supports
Network Rail in these business objectives
and is fully engaged with the Network Rail
lead Business Improvement Team who are
currently focused on improvements on the
end to end process of track renewals. 
Against a backdrop of ongoing recovery
Jarvis Rail has remained diligent in delivering
safe, high quality, products and services,
efficiently and on time by utilising innovative
methods and techniques. 
In July 2006, the team won a top national
award for the innovative deployment of its
mechanised Accutrack
®
track renewals
system at Polesworth on the WCML. The
project was named the ”Most Innovative
Transport Project” at the National Transport
Awards and Jarvis was recognised for setting
a benchmark for fast, efficient and safe track
renewals using the Mole and Slinger
®
to
replace track safely and at a rate more than
double the industry standard.
During a very busy Christmas period Jarvis
Rail West Coast completed complex
formation renewal and piling works in
preparation for the installation of new points
as part of the Rugby Station Remodelling
scheme. The Electrical Projects Group (EPG)
completed the main commissioning of the
Brightside resignalling project. Jarvis Rail
London North East were also very active and
completed a number of projects including
Chaloners Whin near Y ork, where the Slinger
®
train was fully utilised on Christmas Eve to
relay more than 800 yards of track on
concrete sleepers. 
West Coast Main Line (WCML)
Following the completion of the West Coast
Route Modernisation Major Project the
second generation of contracts are now
starting to come on stream. 
The large and complex Rugby Station
Remodelling is due to be completed in 
late 2008. Jarvis was awarded the second
stage of the project following successful
completion of stage one, which included 
the scheme development, planning and
mobilisation of the project organisation.
Jarvis is contracted to deliver the planning
and construction of the new track, drainage
and Overhead Line (OHL) system, coupled
with the necessary decommissioning of
existing obsolete infrastructure. The
complexity and variety of the scheme design
has demanded the development of further
innovative construction processes, and have
proved to deliver a high quality product
efficiently and on time.
The Line Speed Enhancement project
between Summit and Abington on the
WCML commenced in early 2007 and 
is expected to be fully commissioned 
by December 2008. Scotland Track 
Renewals Company (strc) are undertaking 
the initial works including track renewals,
associated through alignment tamping 
and OHL electrification alterations. 
These will be followed by the EPG team 
completing the signalling design and
commissioning. 
The West Coast team continues its excellent
safety performance delivering all works
without sustaining any RIDDOR reportable
accidents during the period.
London North Eastern (LNE)
The period has continued to see an 
extensive volume of work being undertaken
by Jarvis in the LNE territory, an impressive
total of 287,758 composite yards of Plain 
Line and 51 S&C units being renewed overall.
One of the most significant achievements
has been the ongoing improvement in the
AFR. This was highlighted in March when
Peterborough depot achieved an impressive
730 day period without a reportable accident.
Plain Line track quality has also been the
subject of continued improvement across 
the territory. 
The fifth generation of Slinger
®
was deployed
during a successful blockade at Spalding in
Lincolnshire. In addition to the conventional
renewal of 1,606 yards of track, the team
worked through the night on three occasions
to deliver approximately 3,800 sleepers in
each 18 hour period. This quantity of sleepers
is nearly double the amount that would have
been laid using traditional methods in the
same period of time. Throughout the two
week blockade the team successfully
renewed more than 30,000 composite yards
of track and worked hard to ensure that the
project was completed safely and handed
back on time at line speed.
Rail 10 Jarvis plc Annual report and accounts 2007
Operating Review
Jarvis in Scotland
Under the new banner of strc the team in
Scotland has maintained a very positive
business performance throughout the period.
The track renewals team completed another
period without the workforce sustaining any
RIDDOR reportable injuries. They are the 
only IMT in the UK to have reached 1,100
days accident free and have been highly
commended by Network Rail for their
exemplary safety performance.
The ability to deliver projects in all rail
infrastructure disciplines is demonstrated in
the diverse range of contracts the team has
completed during the period. On the Glasgow
North and South Electrics OHL project 4,000
metres of return conductor wire together
with over 43,000 metres of contact wire were
renewed which included 1,869 metres
renewed within one 8 hour possession. The
Through Alignment Design project completed
174,000 yards, with both projects being
delivered on time and within client budget.
A further notable achievement was the award
and delivery of Transport Scotland’s first
contract, the Mossend to Elgin Gauge
Enhancement project. The completion of the
enhancement works, three months ahead of
schedule, on over 270 miles of railway line
allowed strc to demonstrate its skill and
expertise for delivering high quality
improvement works and showcase the
deployment of innovative and efficient
working methods. 
Strc also delivered two landmark projects for
Network Rail. The Innerwick project was the
first S&C renewal works in the UK to be
undertaken utilising a new modular system.
To facilitate the installation, Jarvis developed
an innovative new beam for lifting panels
utilising two Track Relaying Machines (TRMs)
working in tandem. A further major success
was achieved at Hunterston where the 
new modular S&C system and lifting beam
were again deployed to successfully renew
five point ends and 300 metres of Plain 
Line track renewal in a 54 hour possession, 
an industry first. The new system has the
potential to revolutionise the way that S&C
projects are undertaken providing significant
benefits in terms of cost and time efficiencies
while simultaneously improving safety levels.
Electrical Projects Group (EPG)
EPG delivers signalling, OHL and electrical
and power solutions for customers in the rail
market. They are specialists able to combine
a rigorous approach to complex projects
whilst simultaneously providing innovative
solutions.
In January EPG secured a five-year Network
Rail Signalling Framework contract and 
work has already commenced under the
agreement. The period has also seen the
construction and commissioning of key
projects countrywide for Network Rail. 
Most recently, three high profile and complex
re-signalling projects utilising an extensive
range of technical expertise; Doncaster to
Wrawby Single Cut Compliance project,
Sheffield Brightside Resignalling scheme 
and Brough East Signalling & Level 
Crossing Upgrade. 
EPG are currently working on a signalling
interlocking renewal project on the Durham
Coast Route which includes renewal of
signals, location cabinets and troughing,
along with all necessary telecommunications,
civil engineering, mechanical and electrical
engineering works.  Jarvis plc Annual report and accounts 2007 11
Overview of activities in the business
Fastline Limited (Fastline), the trading name
for the Group’s Plant business, provides
leading edge on track machinery, small plant
equipment and manages an extensive fleet 
of purpose-built vehicles for the rail and other
industries. It now also operates Fastline
Freight intermodal services to the North East
and Midlands. Fastline has also utilised its
small plant equipment resources to develop
lighting solutions for major events to
complement its track lighting capabilities.
On Track Machines (OTMs)
The Network Rail National Framework
contract, secured in 2006, is the main 
source of revenue supplying maintenance
and renewal activity on the rail infrastructure.
This three year contract guarantees minimum
volumes on selected machines. Revenues
reduced in the period due to the rail projects
expected to commence in the period being
delayed or deferred into the next financial
year. A total of 6,271 OTM shifts have been
provided throughout the period. The
machines supplied performed to an
impressive 98 per cent reliability. 
Fastline also operates and maintains a total 
of 65 machines for Network Rail, the latest
addition being a Piling Train. The Windhoff
Piling Multi Purpose Vehicle (MPV) worked 
on the Rugby Station Remodelling project
during the Christmas blockade installing 
16 piles and went on to provide emergency
support to the site of the Grayrigg derailment
where it installed a further five piles.
During the 2006 autumn season of carrying
out rail head treatment in Scotland, Fastline
completed 380 mile circuits with Network
Rails MPVs and achieved 100 per cent
mechanical reliability. Fastline also operates 
a fleet of four Stoneblowers for Network Rail
across the LNE and Scotland territories.
The two Medium Output Ballast Cleaners
(MOBCs) operated by Fastline also
completed 61,067 yards of ballast cleaning 
in 74 shifts with Network Rail’s two MOBCs.
The teams operating the MOBC and the
Stoneblower fleet went through the period
without a reportable accident. 
Specialist plant
The Fastline team provided extensive ballast
excavation and recycling technology on the
Zoetermeer project in Holland for BAM Rail.
Due to environmental constraints all work 
on the Zoetermeer line had to be completed
during the day as the track ran close to
residential homes. To complete the project 
as efficiently as possible, BAM Rail initiated 
a continuous end-to-end highly mechanised
approach along a total of 26 kilometres of
track. To complement this approach the Mole
was chosen as a preferred method of ballast
excavation working in tandem with BAM
Rail’s Powerscreener machine, cleaning and
recycling the existing ballast. The project
went to plan with Mole completing between
600 metres and 1,200 metres of ballast
excavation per day. 
Slinger
®
has continued to perform well
throughout the period with the customer 
base now including all major track renewal
contractors. In total the fleet delivered over
114,000 yards of sleepers, which equates to
over 65 miles. One new customer is T ransplant,
the plant division of Tubelines, for which
Slinger
®
delivered around 7,800 yards of
sleepers on the Metronet Sub-Surface Lines.
This period the fleet numbers increased to 
44 wagons (from five wagons in 2003) when 
a fifth Slinger
®
came in to service. The latest
Slinger
®
delivers enhanced efficiencies and
improved safety due to a number of further
improvements including greater use of
hydraulics. The support arms are now fully
hydraulic and only one person is now needed
to release the machine’s safety mechanism
and engage the arms. 
Small plant
The contract to provide small plant to
Metronet through the new London base 
in Acton, has proved successful in its first
year, with a growth in demand which is
expected to continue following Fastline
receiving approval to maintain London
Underground equipment.
The provision of lineside lighting to the rail
industry remains central to the business with
the team lighting up over 1,000 miles of track
throughout the period for both internal and
external customers.
As part of Fastline’s small plant diversification
strategy, the events industry has been
targeted with the supply of specialist
floodlighting. Fastline has already supplied
lighting to major events such as Glastonbury
Music Festival, V-Festival and even movie
premieres at Leicester Square. Fastline’s
events team is now actively promoting the
Crewmaster
®
range of vehicles targeting 
the large number of events companies, 
all of which have a need for messing and
welfare facilities on location, quite often 
for extended periods.
Logistics
This has been an exciting period for the start 
up rail freight and logistics business. Fastline
took delivery of two Class 56 locomotives 
in May 2006 with a third arriving in June. 
The first commercial service transporting
intermodal containers was launched in June
running between Thamesport, the UK’s third
largest intermodal container port, and
Doncaster Railport. During the period Fastline
has established a portfolio of container
customers from shipping lines to third party
logistics suppliers. A second service was
launched in August from Thamesport to the
terminal at Birch Coppice near Birmingham,
creating a gateway to the Midlands and North
West region. The freight team has provided
haulage services to Network Rail and Jarvis
Rail for specialised engineering and 
ballast trains.
The Fastline Transport hire business
continued to develop with the UK’s largest
hire fleet of welfare vehicles, providing
productivity enhancement to mobile teams
with full health and safety compliance. In
addition to the rail industry these vehicles 
are being hired to a diverse range of
customers from construction, highway
maintenance, utilities, councils and
government agencies. The award winning
Crewmaster
®
has benefited from the
introduction of the new Ford Transit,
providing better driver and passenger
comfort and safety with reduced operating
costs and emissions. Standard vehicles have
also been introduced to the hire fleet to offer
greater customer choice and grow revenue.
Following the sale of the Prismo Road
Markings business, Somerford Equipment
Engineering became part of Fastline’s
Logistics business. Somerford provides 
high end engineering conversions for road
maintenance vehicles and has supplied 
50 per cent of the UK’s requirement of white
lining vehicles. The business has a strong
reputation for providing high quality vehicles
and delivered a substantial order to Hitachi
Capital during the period.
Plant 12 Jarvis plc Annual report and accounts 2007
Operating Review
Overview of activities in the business
Accommodation Services includes the wholly
owned subsidiaries of Jarvis Accommodation
Services Limited (JAS) and Jarvis
Construction (UK) Limited which carry on
Facilities Management (FM) and construction
operations respectively. 
Our exit from Construction is nearing
completion. Construction defects on old
contracts are now largely finished and our last
contract, Whittington Hospital reached
practical completion in October 2006. We are
providing management support for the
second phase of Whittington Hospital 
which is expected to be completed in 
autumn this year. 
The ongoing stabilisation of JAS has
continued during the period. The integration
of new FM projects at Rhondda, Croydon 
and commencement of FM at Whittington
Hospital has led to increased revenues 
in JAS. Greater commercial emphasis
combined with effective cost control
throughout the business has led to profit
improvement.
Facilities Management
The senior management team under the
operational direction of Managing Director
Stuart Laird, has continued to drive service
improvement and profit enhancement
initiatives through the business. Several
significant management changes have 
been implemented within the FM business
creating a national operations structure
resulting in more cohesive and consistent
service delivery. Robust financial and
commercial processes have been introduced
which have, in particular, enabled much
improved cash collection and the catch up 
of historic commercial issues, such as
variations and benchmarking. An extensive
service improvement programme was 
carried out during the period and has now 
been completed. This has resulted in service
delivery improvements and efficiencies at
site level through the introduction of a new
management operations system, which
has been implemented across all contracts.
The FM business comprises 28 contracts, 
24 of which are long term PFI and include 
16 schools, 5 hospital contracts, the Army
Foundation College at Harrogate, one district
council office in Chippenham and Tyne and
Wear Fire Stations. Outside these PFI
contracts the business operates FM
contracts for Redcar and Cleveland Borough
Council, British Antarctic Surveys and GNER.
Following the sale of the Prismo Road
Markings business, the Herefordshire Jarvis
Services local authority outsourcing contract
has been added to the JAS portfolio.
Trading has remained challenging on a small
number of contracts, but the disposal of the
Liverpool, Wirral and Kirklees contracts, will
create a business which is then profitable 
at the contract level.
Safety improvement plans, focussing 
on more stringent accident and incident
reporting and investigation, have been
instigated across the business. This has
resulted in a reduction in accident frequency
rates in the second half of the period and 
an enhanced safety awareness amongst
employees. Whilst it has again been a testing
time much progress has been made,
particularly with regard to the resolution of old
construction issues and getting the final exit
from construction firmly within our sights.
The business now has a long term profitable
income stream with a healthy forward order
book and excellent penetration within the 
PFI market. 
Accommodation Services Jarvis plc Annual report and accounts 2007 13
Investor Information
Shareholder Services
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
Amalgamation of accounts
Shareholders who receive duplicate sets 
of Company mailings as a result of multiple
accounts registered in their names should
write to the Registrar to have their accounts
amalgamated.
Gifting your shares to charity
Shareholders who have a small number of
shares can often find it uneconomical to sell
them. An alternative is to consider donating
them to the charity ShareGift (registered
charity 1052686), which collects donations 
of unwanted shares until there are enough 
to sell and uses the proceeds to support
other UK charities. Further information can
be obtained from the Company’s Registrars
or from ShareGift on 020 7828 1151 or from
www.ShareGift.org. There is no implication
for Capital Gains Tax (no gain or loss) when
you donate shares to charity and UK
taxpayers may be able to claim income 
tax relief on the value of their donation.
Investor Centre website
The Company’s Investor Centre website
provides users with timely access to 
up-to-date and historical information on
Jarvis, including results announcements,
presentations, annual reports, regulatory
announcements and other investor relations
materials and tools including a real time
share price feed and share price calculator.
The Investor Centre can be accessed at:
http://www.jarvisplc.com/jarvisplc/investor/.
Unsolicited mail
The Company is obliged by law to make 
its Share Register available to other
organisations who may then use it for 
a mailing list. If you wish to limit the 
receipt of unsolicited mail you may do so 
by registering with the Mailing Preference
Service (MPS). Registration can be made 
in writing to: The Mailing Preference 
Service (MPS), Freepost 29 LON20771,
London, W1E 0ZT or online at
www.mpsonline.org.uk.
Company Details
Registered Office
Meridian House
The Crescent
York
YO24 1AW
Company Registration
Registered in England
No. 2238084
Our Advisers
Auditors
RSM Robson Rhodes LLP
St George House
40 Great George Street
Leeds
LS1 3DQ
Bankers
Lloyds TSB
City Office
Bailey Drive 
Gillingham Business Park
Kent 
ME8 0LS
Corporate Finance
Close Brothers Group plc
10 Crown Place
London
EC2A 4FT
Stockbrokers
KBC Peel Hunt Ltd
111 Old Broad Street
London
EC2N 1PH 14 Jarvis plc Annual report and accounts 2007
Biographies
Non-Executives Executives Chairman
Steven Norris (62)
Executive Chairman 
and Chairman of the
Nomination Committee
Steven has a degree 
in Law and spent 
most of his early life 
in the motor and
engineering business. 
He entered Parliament in
1983 and was Minister of
Transport in London from
1992 to 1996. He retired
from Parliament in 1997
and became Director
General of the Road
Haulage Association. 
He is now Senior 
Partner at Park Place
Communications, 
a consultancy
specialising in transport
policy and planning. He
joined the Jarvis Board 
in September 2000 
and was appointed 
as Chairman in 2003.
Steven is Chairman 
of the Nomination
Committee.
Richard Entwistle (54)
Chief Executive
Richard has an
Engineering degree
from Leicester
University and is 
a chartered Civil
Engineer. Much of his
early career was spent
with Shephard Hill Civil
Engineering Ltd, a
company acquired 
by Jarvis in 1990.
He left the Group in
1994 to join Balfour
Beatty where he spent
two years developing
their fledgling Highway
Maintenance business
before joining Amey
plc in 1996 to manage
the rail business which
had been acquired 
as part of Rail
privatisation. He 
joined the main 
Board of Amey plc 
in 1997 with the
responsibility for 
both Amey Rail and
Amey Highways (and
latterly Tube Lines).
Richard joined Jarvis as 
Chief Operating Officer
with responsibility 
for the Group’s core
operations and was
appointed Chief
Executive in 
June 2006.
John O’Kane (48)
Group Finance
Director
John is a fellow of the
Institute of Chartered
Accountants in
Ireland. He joined
Jarvis after a brief
spell as Group Finance
Director at Eco-Bat
Technologies Limited.
Previously he was
Group Finance
Director of both
Peterhouse Group plc
and Kelda Group plc.
John has also
previously held 
senior management
roles with ICI and
Samsung Electronics
in the UK and KPMG 
in South Africa. John
was appointed to 
the Board as Group
Finance Director 
in April 2006.
Elizabeth Filkin (66)
Senior Non-Executive
Director
Educated at
Birmingham
University, Elizabeth
spent her early career
as a lecturer and
community worker
before becoming
Chief Executive of the
National Association
of Citizens Advice
Bureau. In 1988 she
became Deputy Chief
Executive of the
London Docklands
Development
Corporation, a post
she held until 1992. 
In 1993 she was
appointed Adjudicator
for the Inland
Revenue, and
consequently for
Customs and Excise
and the DSS
Contributions Agency
in the UK and
Northern Ireland. 
In 1999, Elizabeth
became Parliamentary
Standards
Commissioner, a 
role she held until
2002. Elizabeth was
appointed to the
Board in August 2003.
She is the Senior
Independent Director
and a member of the
Audit, Corporate
Governance,
Remuneration 
and Nomination
Committees.
Prof. Brian Mellitt (67)
Non-Executive 
Director 
Brian is Non-Executive
Chairman of Building
Research Establishment
Limited and Sira Ltd. He
is Past President of the
Institution of Electrical
Engineers. Additionally,
he has acted as Rail
Adviser to N M
Rothschild and Sons
Limited for international
railway restructuring
projects. He has
previously held
positions as Professor
of Electrical Engineering
at the University of
Birmingham and
Director of Engineering
for London
Underground Limited;
from 1995 to 1999 he
was the Director of
Engineering and
Production and a main
Board member for
Railtrack plc. Brian was
appointed to the Jarvis
Board in October 2002.
He is a member of the
Audit, Corporate
Governance and
Nomination
Committees and 
is Chairman of the
Remuneration
Committee
Christopher Rew (59)
Non-Executive
Director
Chris is a Chartered
Accountant and was
formerly a partner at
RSM Robson Rhodes
until April 2004, where
he was the partner 
in charge of Market
Sectors, having led
the design and
implementation of 
the programme to
refocus the firm onto 
a market sector basis.
Previously he was the
Managing Director of
the Corporate Group
with responsibility for
the core operations
(audit, accounting, tax,
corporate finance and
consultancy) of the
firm. Chris has also
been an audit and
advisory partner at the
firm with a wide range
of clients. He was
appointed to the Jarvis
Board in May 2004.
Chris chairs the Audit
and Corporate
Governance
Committees and 
is a member of the
Remuneration and
Nomination
Committees. Jarvis plc Annual report and accounts 2007 15
Executive T eam
Bernard Westbrook (60)
Group Human 
Resources Director
Bernard is a qualified 
and seasoned 
personnel 
professional. Prior 
to joining the Jarvis
Group in 1997 he 
spent over 30 years in
the railway industry,
holding a number of
senior posts in the
personnel function 
of various engineering,
operational, corporate 
and subsidiary business
divisions of the former
British Railways Board. 
As Group Personnel
Director of British Rail
Infrastructure Services,
he was heavily involved 
in the railway
privatisation process.
Bernard is currently 
a member of the CBI’s
Employment Policy
Committee.
Patrick McHale (44)
Group Managing
Director
Operations
Pat spent the majority 
of his career to date
working within the
mining industry. 
He held numerous
senior management
positions reaching
Board level in 1996
and gaining chartered
membership of the
Institute of Mining
Engineers. He made
the transition into 
the rail industry in
February 2000,
starting in a senior 
role within the Plant
Division where his
skills and leadership
ability led to promotion
into the post of
Managing Director,
Track Renewals in
2002 and Managing
Director, Jarvis Rail
during 2004. He was
appointed as Group
Managing Director
Operations in April
2006 and is
responsible 
for operational
improvement across
the Group, the 
Group’s research 
and development
programme, key
account management,
Jarvis Control Centre
and the engineering
team.
Mark Akinlade (39)
Group Company
Secretary and 
General Counsel
Mark has an honours
degree in Law and is a
practising Solicitor. He
started his legal career
in London’s West End in
1993 and joined the
Group’s legal team from
private practice in June
2003. During his years
in private practice he
acted for a variety of
corporate, commercial
and insurance clients in
connection with their
business affairs, dispute
management and
commercial property
interests. He has been
Head of Legal Affairs
since January 2005 
and Group Company
Secretary and General
Counsel since the end
of May 2007.
Michael Houghton (45)
Group Managing
Director
Rail and Plant
Mike has an honours
degree in Mechanical
Engineering and 
spent the majority 
of his working career 
in the deep-mine 
coal industry. He is a
Chartered Mechanical
Engineer and also has
both professional 
safety and 
management
qualifications. His
previous career
included senior
engineering posts 
at collieries in the
Midlands and
Y orkshire. Mike joined
Jarvis in September
2003 as Trains
Operations Director.
He was appointed 
as Managing Director
of the Plant Division 
in February 2005 
bringing together
under the Fastline
brand, On Track
Machines, Small Plant
and Transport. In April
2006 Mike was
appointed as Group
Managing Director 
of Jarvis Rail and
Fastline.
Stuart Laird (54)
Managing Director
Jarvis Accommodation
Services
Stuart has extensive
experience of working
at senior level within
both the facilities
management and
construction markets.
Prior to joining Jarvis,
Stuart was a main
Board Director of The
Building & Property
Group and helped
instigate its sale to
Interserve in 2000. 
His specialism is the
turnaround of under-
performing projects
and businesses. 
Using these skills he
has performed various
roles within Jarvis
Accommodation
Services since 
June 2003. 
Kjell Karlsen (49)
Group Commercial
Director
Kjell has a business
degree from Syracuse
University in the US
and has, besides
positions in finance,
held senior
international
management
positions in the 
fields of procurement,
marketing and
contracts with
companies such as
Price Waterhouse,
United Technologies,
Champion Spark Plug
Company, ABB and
Bombardier. He joined
Jarvis as Chief
Financial Officer in
March 2005 after
having worked in
several European
countries and in Asia.
Richard Thornton (53)
Group Director
Engineering and
HSQE
Richard has an
honours degree in
Civil Engineering and
before joining Jarvis 
in 1998 he spent over
25 years in the rail
industry, holding a
number of senior
positions in track 
and structures
maintenance and
renewal, as well as
contract management
within British Rail and
the newly-privatised
railway industry. He is
a Chartered Engineer
and is a Fellow of the
Institution of Civil
Engineers. He was
appointed as Chief
Civil Engineer
Jarvis Rail in 2000,
Engineering Director
in 2004 and became
Group Director
Engineering and
HSQE in December
2006. He represents
the Railway
Infrastructure
Contractors on a
number of industry
bodies. 16 Jarvis plc Annual report and accounts 2007
Corporate Governance Statement
Assessment of the internal controls has
ensured they are developed appropriately,
and in line with the revised organisation
structure; and
– The Corporate Governance Committee 
has again been pivotal in mentoring these
improvements, by continuing to review 
the speed of implementation and the
subsequent quality and consistency of 
the control environment in all areas of the
business resulting in greater clarity of
process for all commercial activities.
The Board receives and reviews frequent
reports on performance against budget,
strategic planning and operational issues
and the ongoing process improvements
being developed within the business. 
The quality of each report is the subject 
of critical review. The review process at 
both the Board and Corporate Governance
Committees ensures that the review of
internal control throughout the period has
exceeded the annual review minimum
recommended by the Code. The Board
continues to pursue improvements in
internal controls in all areas of the business.
Evaluation of business risks 
The major changes to the Group
organisation structure have required 
an ongoing review of the business risk
identification and evaluation process. 
During the last two financial years we have
reviewed the risk evaluation and reporting
process by surveying the Board and senior
management. This identified that progress
continues to be made but there remained
further work to be done to improve and
develop this process further. The intention
of the Board, is to ensure risk identification
and evaluation is embedded within 
the operational process. The revised
commercial process encompasses “Tender
to delivery”, and risk management review is
included in the entire commercial process.
During the period, business risk continued
to be a formal consideration in the Monthly
Operating Review meetings for each
division. Key issues identified divisionally 
and functionally are consolidated up through
the organisation structure, consequently
Corporate Governance
This report explains the Board’s application
of the principles contained within the
Combined Code and best practice in
governance matters. The Board has adopted
the “comply or explain” approach and this
report explains where the Group does not
fully comply with the provisions, giving our
reasons. The Board believes that the
Company has complied throughout the 
period, and to the date of signature, with 
the provisions of the current code save
where explained here.
Internal control
In last year’s Corporate Governance report,
under the heading “Internal Control”, we
described the actions then taking place to
implement improvements in the Group’s
control environment. The Board is
responsible for the Group’s system 
of internal control and reviewing its
effectiveness. This responsibility is
delegated to the Corporate Governance
Committee (which comprises inter alia 
the same members of the Board as are
members of the Audit Committee, together
with the Chief Executive, the Group
Company Secretary and the Head of Internal
Audit) to monitor the improvements in
internal control and the effectiveness of
changes made. The work of the Corporate
Governance Committee has focused on 
the governance environment and its results
have informed the whole of the following
report. Particular attention has been
devoted to business processes and 
controls as the Group has changed and
developed its organisation during the period.
The Board is committed to ensuring that the
Group has sound and appropriate systems
of internal control. There is a continuous
appraisal of these controls and
improvements to the procedures adopted
by the Group have continued throughout 
the period. However, any system of internal
control can only provide reasonable and 
not absolute assurance against material
misstatement or loss, as it is designed 
to manage rather than eliminate the risk 
of failure to achieve business objectives.
The Board has responsibility for the
management of the Group and specific
matters are reserved for the decision of 
the Board under the Articles of Association,
Group policies and delegated authorities.
The Board has also adopted a set of
corporate responsibility principles,
addressing both compliance and aspiration
that deal with health, safety, environmental
responsibility risk, Group business
methodology and relationships with
stakeholders. These responsibilities 
are kept under review.
The improvements in internal control
previously initiated have been consolidated
within two key projects during this period, 
to refocus the commercial procedures in
line with the current business structure 
and to consider a new Enterprise Resource
Planning (ERP) system in accordance with
organisational changes. These projects
continue to focus on the management and
mitigation of identified risks, and link with
the priority identified last year to improve
independent review and challenge for
complex commercial, legal and contractual
issues, more robust systems and more
timely information flow. Specifically, the
following actions identified last year 
have been consolidated as follows:
– Of the project areas identified for focus,
finance and commercial process
improvements have continued and are
included in a project to develop a new ERP
system. Additionally, policy developments
have resulted in a new Group Contracting
Manual and redeveloped Group Finance
Manual which ensure a clear strategy in the
Group’s continuing development;
– Part of the impetus behind the new Group
polices above reflected the appointment of
new senior management personnel in many
areas of the Group’s business, but in
particular strengthening and improving the
operational accountability of the finance and
commercial teams; 
– The organisational structure has continued
to be developed during the period to ensure
it was appropriate to achieving the redefined
Group objectives. This has been aligned
with the overhead reduction plan of the
Group to ensure an appropriate
management structure is retained to 
service the operational requirements. Jarvis plc Annual report and accounts 2007 17
significant issues are reported to the 
Board and are addressed by the Corporate
Governance Committee. In line with the
recommendations of the Smith Report, the
Audit Committee through the Corporate
Governance Committee continues to review
the risk control processes, supplementing 
the Board’s formal review of the outputs in
this area. The Board confirms that the process
for identifying, evaluating and managing
significant risks (both financial and non
financial) faced by the Group accords with the
Turnbull Guidance on Internal Control and has
been in place for the period under review and
up to the date of approval of the Annual
Report, and is regularly reviewed by the
Board.
Internal Audit
The Group Internal Audit function provides 
an independent mechanism for monitoring
and reviewing internal control effectiveness
across the Group. The Head of Internal Audit
reports directly to the Audit Committee and
attends all Corporate Governance Committee
Meetings. The terms of reference for the
function continue to be supported by the 
Audit Committee, with the main focus being
the assessment of the internal control
environment. Group Internal Audit continues
to develop risk assurance within the business
risk review process. Audit Committee
approval is required for any change in the
appointment of the Head of Internal Audit.
The annual audit plan for the period ended 
2 April 2007 was developed and agreed with
the Audit Committee. During the period, there
were some ad hoc projects requested and
approved by the Audit Committee to help
understand risks and internal control issues
associated with the changes taking place in
the business. Another key focus has 
been providing project assurance in the
development areas mentioned in the 
Internal Control section above. 
Insurance
The Group obtains comprehensive insurance
cover for its operations, including third party
liability, employers’ liability and material
damage. Network Rail has continued to
provide an industry-wide third party legal
liability insurance scheme to the level of
£155m required by the Office of Rail
Regulation which covers all the work
undertaken on Network Rail infrastructure 
by Network Rail and its sub-contractors. 
The Rail and Fastline operations of the 
Group continue to benefit from this cover. 
The Group maintains separate third party
liability insurance for other work to a level 
of £60m. Directors and Officers of the
Company and its subsidiaries have the 
benefit of a Directors and Officers Liability
insurance policy which provides appropriate
cover in respect of legal actions brought
against the Directors.
The Board
Decisions are taken by the Board as a whole,
based on detailed papers sent out in advance
of each Board meeting. The quality of Board
papers has improved during the period
particularly in the field of clarity of financial
reporting. Further improvements in financial
reporting are underway as part of the Finance
Process Projects work. The first regular item
on every Board agenda is safety, with reports
provided on both operational and occupational
safety matters. Routine Board agenda items
include reports from the Chief Executive and
Group Finance Director and reports on
Corporate Governance and Shareholder
matters. On a rotational basis, the Board
receives reports on specific topics including
risk management and insurance, human
resources and corporate development issues
as well as Corporate Social Responsibility
matters.
Management of day-to-day operations is
delegated to the Chief Executive and to an
Operational Executive Committee comprising
the Executive Directors together with Senior
Executives of the Company including the
Group Company Secretary and the Group
Director of Human Resources as well as the
heads of each operation and the core
functions. Senior managers of each of the
businesses meet on a weekly basis in a core
management meeting which is attended by
the Chief Executive, Group Finance Director,
Group Company Secretary and Group Director
of Human Resources. Certain commercial
matters are delegated to a Committee of any
three Directors. All matters considered in this
way are submitted for ratification at the next
regular Board meeting.
The Chairman
Steven Norris has been Executive Chairman
since his appointment in September 2005.
Steven had previously been Non-Executive
Chairman and had been identified as
independent on his appointment to the Board.
His other commitments include a number of
directorships, some of a charitable nature, 
and his senior partnership in Park Place
Communications, which is a consultancy
specialising in transport and environment
matters. A written division of responsibilities
between Chairman and Chief Executive was
established in 2005. The Chairman has
responsibility for the effective operation of 
the Board’s proceedings and the management
of the relationship between Executive and
Non-Executive Directors. Richard Entwistle
was appointed as Chief Executive on 30 June
2006 succeeding Alan Lovell. Richard
Entwistle is responsible for the operations 
of the Group. 
Approximately quarterly, the Chairman holds
meetings with the Non-Executive Directors
without the Executive Directors being
present.
Directors
The Board currently includes three 
Non-Executive Directors, all of whom are
deemed independent, by the Board, the
Chairman, and two Executive Directors.
However, the Company acknowledges that,
due to his previous appointment with RSM
Robson Rhodes LLP , Chris Rew had a material
relationship with a body that now has a
relationship with the Company. However, 
the Board recognises that he both declared 
his interest and took no part in the
appointment of RSM Robson Rhodes 
in 2005 and that since that time he has
demonstrably exercised both independence
of character and judgment in his role as 
Non-Executive Chairman of both the Audit
Committee and Corporate Governance
Committee. During the period under review
the ratio of Non-Executive Directors to
Executive Directors has been 1:1. 18 Jarvis plc Annual report and accounts 2007
Corporate Governance Statement
The Group intends to maintain the ratio of
more than one half of the Directors, excluding
the Chairman, being independent Non-
Executives and maintains under review the
balance of skills currently available amongst
the Non-Executive Board members. Elizabeth
Filkin is the Senior Independent Director. 
Executive Directors’ service agreements have
notice periods of one year from the Company
and six months by the Executive. None of 
the Executive Directors hold Non-Executive
directorships in FTSE - 100 companies. Where
the Company releases an Executive Director
to serve as a Non-Executive Director
elsewhere, the matter is considered by the
Remuneration Committee for the impact of
this on the Director’s remuneration.
All Directors are appointed for a specific 
term and are subject to re-appointment by 
the Company in general meeting at the 
first Annual General Meeting after their
appointment by the Board and every three
years thereafter. Biographical material and 
the reasons for proposing a Director’s
reappointment are given to Shareholders 
prior to the Annual General Meeting each year.
The terms and conditions of appointment of
the Non-Executive Directors are available for
inspection at the registered office of the
Company and are made available for
inspection at the Annual General Meeting 
of the Company.
Attendance statistics at Board and Board
Committee meetings during the period are
shown in the table above. The figures include
attendance at Committee meetings by invited
Executive Directors, who do not normally 
form part of the Committee membership. 
Whilst it is not policy to make the Non-
Executive Directors readily available, in
response to the increasing demands of the
investment community, their expertise and
knowledge have been utilised where relevant.
Additionally, as part of the regular reporting to
the Board, information on the issues and
concerns of the investment community are
considered. At each regular meeting, the
Board receives a report from the Company
Secretary on the relative share price
performance of the Company including
movement in institutional shareholdings as
well as reports on the beneficial holders of 
the share capital. 
Any Director may, if necessary, seek
independent external advice at the Company’s
expense and has access to the Company
Secretary for his advice and services and to
procure such independent advice if requested.
Any concerns which a Director may have
about the running of the Company, or a
proposed action, are recorded in the Board
minutes. If any such concerns arise and are
not addressed, the Non-Executive Director
would be able to provide a written statement
to the Chairman on the basis of such concern.
On appointment, Directors are entitled to
receive any training they consider necessary
on issues of relevance to their role and are
subsequently entitled and invited to attend
relevant training seminars. Site visits and
briefings are arranged to coincide with Board
meetings, and meetings with Major
Shareholders are arranged on an ad hoc 
basis. Changes to the composition of the
Board during the period under review are set 
out in the Directors’ Report on pages 32 to 34
and biographical details and Committee
memberships of each of the Directors 
appear on page 14.
The number of Board and Committee meetings attended by each Director during the period was as follows: 
Executive Directors periodically attended Committee meetings by invitation.
Corporate
Remuneration Nomination Governance
Director Board Audit CommitteeCommittee Committee Committee
Number 
of Meetings held 20 6516
R Entwistle 20 3 – – 4
E Filkin 20 6516
A C Lovell* 5 ––––
A Marnoch* 2 –––2
B Mellitt 19 6516
S Norris 20 – – 1 5
J O’ Kane** 18 5 – – 2
C J Rew 19 6516
*    Resigned during the period.
** Appointed during the period.
In addition to the above meetings the Board met as a Committee to approve elements of the restructuring and other transactions on two further
occasions during the period. Jarvis plc Annual report and accounts 2007 19
Performance evaluation
Given the small number of changes to the
membership of the Board from the previous
year and the small size of the Board itself, an
annual performance review is seen to be
overly bureaucratic. The last completed
review was undertaken in the 2005-06
financial year. A further review is now
underway. Interviews with each Board
member, structured in accordance 
with a template in questionnaire form, will 
be conducted by the Chairman, whilst the
Chairman’s own evaluation will be carried 
out by the Senior Independent Director, also 
in interview form. As required by the Code, 
the Non-Executives, led by the Senior
Independent Director, are responsible for
performance evaluation of the Chairman,
taking into account the views of Executive
Directors. The resultant report will be
considered by the Board and adopted.
Company Secretary
The Group Company Secretary is responsible
for ensuring the timely flow of information and
provision of sufficient resources to the Board
and its Committees as well as ensuring that
Directors not only receive a suitable induction
to the Board, but also receive any ongoing
training, which they require. The appointment
and removal of the Group Company Secretary
is a matter reserved for the Board as a whole.
Board Committees
The Board has appointed an Audit Committee,
a Remuneration Committee, a Corporate
Governance Committee and a Nomination
Committee. These meet regularly throughout
the year to scheduled agendas and are
discussed in detail below.
Audit Committee
As required by the Code, the Audit Committee
comprised at least three independent Non-
Executive Directors throughout the period.
The Committee has been chaired by Chris
Rew since his appointment to the Board in
May 2004. Chris is a former partner of RSM
Robson Rhodes LLP and is deemed by the
Board to have invaluable and relevant financial
experience. Elizabeth Filkin, being a former
member of the Audit Commission and
currently Deputy Chairman of the FSA
Regulatory Decisions Committee, is also
regarded as having valuable experience 
and the remaining Committee Member,
Professor Brian Mellitt, has extensive
business experience. All Committee
members are regarded as independent. The
Board considers that the attendance of all the
Non-Executive Directors on each of the Board
Committees provides important continuity at
the current time. The Group Finance Director
and Head of Group Internal Audit have been
required to attend when requested. 
The Company Secretary is the Secretary to 
the Committee. On more than one occasion
during the last period, the Non-Executive
Directors have met without the presence 
of the Executive Directors. 
The Committee meets with the external
auditors to review the Group’s Annual Report
and Interim Results and has responsibility for
ensuring that appropriate accounting policies
and compliance procedures are in place.
Part of this meeting is held without the
presence of the Executive team. The
Committee ensures that the principles of 
the Code relating to accountability and audit
are followed for financial reporting, internal
control and the relationship with the Group’s
auditors. The Committee also reviews the fee
ratio of non-audit work undertaken by the
external auditors and has adopted a policy that
it must give prior approval for any non-audit
services provided by the external auditors with
a fee in excess of £100,000. The Committee
reviews all other non-audit expenditure with
the external auditors. The Audit Committee
also regularly addresses the issue of auditor
independence and it is considered that
adequate provision is made to ensure its
protection. 
This is the third year of RSM Robson Rhodes
LLP’s appointment and consequently for the
purpose of compliance the Company can
confirm there was no need for a senior partner
change during the period under review. As a
former member of RSM Robson Rhodes LLP ,
Chris Rew declared his interest and took 
no part in the appointment of RSM Robson
Rhodes and will continue not to participate in
the Board decision on any appointment of
RSM Robson Rhodes for non-audit work. 
The members of the Audit Committee are
predominately the same as the Corporate
Governance Committee. Consequently the
findings and observations of the Corporate
Governance Committee are considered when
reviewing the effectiveness of the system of
internal control, which includes monitoring
and reviewing the effectiveness of the
Group’s Internal Audit function. The Audit
Committee also receives reports of the
activity of the Group’s Internal Audit
department. The Group Internal Audit function
continues to report directly to the Committee
with line management of the function being
provided by the Group Company Secretary.
Following the change in Group Company
Secretary on 31 May 2007, line management
has been assumed by the Group Finance
Director. The Head of Internal Audit meets
regularly with the Chairman of the Audit
Committee on Internal Audit matters. Audit
Committee minutes and reports are regularly
provided to the Board. 
In addition to the Audit Committee’s duties
described in the above paragraphs the
Committee reviews the scope and nature of
the audit, reviews the auditor’s quality control
procedures and discusses any problems or
reservations arising from audits. 
The Audit Committee considers that the
above description of its work adequately
meets the recommendations of the Combined
Code as to disclosure. The Committee’s terms
of reference are available on the Company’s
website and have been made available
throughout the period.
Remuneration Committee
The Report of the Remuneration Committee
and the Group’s compliance with the
Combined Code in relation to Directors’
remuneration is given on pages 27 to 31. The
report will be submitted to the Shareholders
for their approval at the forthcoming Annual
General Meeting. The Remuneration
Committee is responsible for setting and 20 Jarvis plc Annual report and accounts 2007
Corporate Governance Statement
monitoring the level and structure of the
remuneration of Executive Directors,
including the Chairman, and the senior
management reporting directly to the Chief
Executive and consults the Chief Executive
on their recommendations. The level of fees
payable to Non-Executive Directors and the
Chairman are set by the Board as a whole on
the recommendations of the Chief Executive.
In preparing these recommendations, the
Chief Executive reviews the fees payable 
to Non-Executive Directors of comparable
companies to provide a benchmark. The
Committee comprises all the Non-Executive
Directors and was chaired during the period
by Professor Brian Mellitt. The Group
Company Secretary is Secretary to the
Committee. The Chief Executive and Group
Director of Human Resources are invited to
attend as appropriate. No Executive Director
is present at a meeting where his own
remuneration is discussed. 
In February 2005 the Board reviewed the
terms and conditions of appointment of the
Non-Executive Directors and agreed that,
given the importance of continuity of the
Non-Executive body to the Company, that 
the notice periods for Non-Executives should
be extended to be comparable with those 
of Executive Directors. Additionally provision
was made in the agreements for additional
fees to be paid to Non-Executive Directors
where the workload of meetings exceeded
that identified as normal in their letter of
appointment. In the period under review
additional fees were paid to the Non-
Executive Directors under this provision 
and this is disclosed in the Report of the
Remuneration Committee. The Board 
will review the fee levels payable to the 
Non-Executive Directors in the current
financial year. 
As required by the Code, Shareholders are
invited specifically to approve all new long
term incentive schemes and significant
changes to existing schemes, save in the
circumstances permitted by the Listing
Rules. The Committee’s terms of reference
are available on the Company’s website and
have been made available throughout 
the period.
Nomination Committee
Nominations for appointments to the Board
are dealt with by a Nomination Committee
consisting of all the Non-Executive Directors
and the Chairman, who is also the Chairman
of the Committee. 
At all meetings where discussion on the
appointment of a Nomination Committee
member has taken place, the candidates 
for the position have absented themselves
during such discussions. The Committee
meets on an ad hoc basis, but at least once
every year. The terms of reference of the
Nomination Committee include the
responsibility for identifying and nominating
for the approval of the Board suitable
candidates to fill Board vacancies. In doing 
so, the Committee takes account of the 
skills, knowledge and experience required
on the Board before commencing a search
based on objective criteria. On behalf of 
the Committee, the Director of Human
Resources and the Group Company
Secretary review the experience and
qualifications of candidates to enable 
the Committee to assess issues of
independence, time commitment,
succession and board balance. External
advice is sought and external search
consultants are used by the Committee 
to ensure that a wide range of candidates 
are considered. The Committee also has
responsibility for succession planning for the
Board and senior management and makes
recommendations to the Board regarding 
the re-appointment of all Directors. 
As required by the Code, apart from the
Chairman the Committee comprised solely
independent Non-Executive Directors
throughout the period. The terms of
reference of the Nomination Committee
provide for attendance by the Chief Executive
at the Committee’s invitation. 
Corporate Governance Committee
The Corporate Governance Committee role
includes the consideration of the structures,
policies and processes of the Group to
achieve good corporate governance and
proper systems of internal control. This
Committee supplements the work of the
Audit Committee and during the period has
specifically focused on the process and
organisational review projects. It has also
provided challenge regarding the coordination
of the various initiatives underway within 
the organisation. It has considered
recommendations about improvements 
to the control mechanisms following the
annual audit and interim reports.
Its membership includes all of the 
Directors (other than the Chairman), the
Group Company Secretary and a number 
of nominated senior specialist staff. The
Committee, chaired by Chris Rew, has 
met regularly since its establishment. The
“Whistleblower” policy which provides the
route for employees and others to raise
concerns about financial and other matters 
in the event that normal channels prove
insufficient or inappropriate continues to be
compliant. The policy is communicated via
the website and through a number of other
channels and includes an independent email
address and a direct phone hotline to provide
secure contact for the use of employees. A
formal agenda item is tabled in the Corporate
Governance Committee for the Group
Company Secretary to review any such
issues with the Non-Executive Directors only.
Shareholder communications
During the period institutional Shareholders
and their representative bodies had contact
with the Chairman, the Chief Executive and
with the Group Finance Director. Such
meetings were reported to the Board. The
Chairman and Group Company Secretary are
made available to meet with representatives
of investor protection bodies during the
period and the views of these bodies are 
also reported to the Board. The Company
welcomes and encourages such Shareholder
dialogue, within the constraints of statute 
and the UK Listing Authority’s guidelines. 
The holdings of large institutional
Shareholders who held shares arising from
the Debt for Equity Exchange reduced during
the period. The proportion of the shares held
by other institutions and private Shareholders Jarvis plc Annual report and accounts 2007 21
or their nominees increased. Shareholders
have been kept informed of developments
within the Company by the release of news
to the regulatory information services and by
a number of circulars during the period and 
after its close. 
Private investors are encouraged to attend
the AGM and EGMs or, if they cannot, to 
vote by proxy. In preparing the agenda for all
General Meetings of the Company, care is
taken to ensure that substantial issues are
the subject of separate resolutions. At the
forthcoming Annual General Meeting, as at
all recent General Meetings, the numbers
and voting intentions of Shareholders voting
by proxy will be disclosed to the meeting.
Shareholders will have an option to direct
their proxy to vote either for or against the
resolution or to withhold their vote. Whilst
clearly stating in the notice to the meeting
that a withheld vote is not a vote in law and
will not be counted in the determination of
the resolution. The Company will continue 
to give at least 20 working days notice of the
Annual General Meeting and the Chairmen 
of the Remuneration, Nomination, Corporate
Governance and Audit Committees will be
available to answer Shareholders’ questions
relating to the responsibilities of the
Committees which they chair.
By order of the Board
Mark Akinlade
Secretary
11 June 2007 Corporate Social Responsibility
Framework
Our mission
The way we do business across the Group
reflects our commitment to profitable
growth, sustainable development and
integrity. Our Principles set the standards 
that we intend to pursue through our
economic goals and business ventures. 
They define what is acceptable business
behaviour, and guide us in what is not. 
Norms of best practice
The Principles are rooted in national and
international law relating to Corporate
Responsibility, much of which is guided by
the Universal Declaration of Human Rights
(UN, 1948), the Labour Standards embodied
in the Fundamental Conventions of the
International Labour Organisation (ILO, 
1930-1999) and the environmental
Conventions agreed following the Rio
Declaration on Environment and
Development (UN, 1992). They also 
build on associated ‘norms’ of responsible
business practice, the most significant of
which are the UN Global Compact (2000), 
the OECD Guidelines (2000), the UN 
Norms of Human Rights Responsibilities 
of Multinational Companies (2002) and the
July 2002 Communique of the European
Commission concerning corporate social
responsibility.
Continuous improvement
These Principles address both compliance
and aspiration. Their true force lies in their
continuous implementation as part of the
way we do business. This is why we continue
to develop policies and programmes to
support the embedding and communication
of these Principles throughout our operations
and those of our partners. In the event that
our Principles are compromised by those
partners with whom we work, we will seek 
to address any problems – although we will
not tolerate consistent failures to adhere to
the Principles.
Implementation 
We will measure progress by developing
relevant indicators to monitor our
performance over time systematically. We
will report publicly on our progress and open
ourselves to scrutiny through independent
audit. In this way we seek to promote
continuous improvement, demonstrate our
accountability to all our stakeholders, and
promote Jarvis as a responsible corporate
citizen and attractive business partner.
Principle 1: Corporate governance and
accountability
We will be accountable, promote Shareholder
value, and operate transparently and to a high
standard of corporate responsibility, to deliver
our long-term commitments.
We will work actively to achieve market
leadership and to deliver sustained returns 
for all our Shareholders. In doing so, we are
guided by UK law and best practice codes 
of corporate governance and responsibility.
We require all our business activities to be
undertaken in accordance with the principles
of transparency and accountability. We are
committed to ensuring that the way we do
business demonstrates long term financial
and societal returns, and that our Financial
Statements reflect our performance
accurately and fairly.
Principle 2: Integrity and ethics
We will be ethical, lawful, transparent 
and honest, in our business operations.
Our success depends on our ability to do the
right thing. We will work proactively to earn
the respect and trust of the public as a whole.
We believe in ethical business practice and
seek to uphold statutory law and regulations.
We reject all dealings that might bias
decision-making, and that might discredit
Jarvis or our customers. We do not allow the
giving or accepting of bribes, and we are all
obligated to report potential conflict of
interest situations as they arise.
Principle 3: Employees
We will promote a diverse, committed, and
well-trained workforce that recognises the
rights of all employees. 
Our employees make us successful. We 
are committed to the development of a
professional and motivated workforce
throughout the business. We are committed
to providing a stimulating and diverse
working environment, and aim to enhance
skills and capacity through continued
investment in employee training, effective
working practices and career development.
We will ensure that the due rights of our
employees are protected. We encourage
diversity and opportunity, and are dedicated
to the provision of fair and equitable
conditions of work. We will not discriminate
against employees on the basis of gender,
age, sexual orientation, marital status,
ethnicity or religious belief. We seek to
uphold the highest labour standards, 
rejecting child or involuntary labour,
excessive overtime or unfair rates and 
terms of pay. We support the rights of our
employees to enter into collective bargaining,
and to join lawful trade unions or form
workers associations.
Principle 4: Business partnerships
We believe partnerships are a fundamentally
important way to do good, successful and
meaningful business.
We believe in collaborative working
arrangements. We are dedicated to a
partnership approach as a means of
facilitating sustained improvement in
business sector performance, and enhancing
our contribution to society. We seek to
engage with, and contribute to, communities
and society through our work in public
infrastructure, education, health, and other
services. Our partnerships are a fundamental
part of the way we do business.
Principle 5: Supply chain responsibility
Our supply chains are important, so 
we will work to support suppliers and 
sub-contractors that want to work with us 
to improve the way we do business. We 
will stop working with those that do not.
We seek to build long-term relationships 
and ‘value chains’ with our customers,
partners, suppliers, and sub-contractors. 
We are committed to ethical and responsible
business practice and expect the same from
our partners in our supply chains. We are
committed to meeting the growing demands
and expectations of our customers by
delivering superior ethical, social, safety, 
and environmental standards. We will ensure
that the same high standards we expect 
of ourselves are also requested of our 
22 Jarvis plc Annual report and accounts 2007
Corporate Social Responsibility Jarvis plc Annual report and accounts 2007 23
suppliers in our procurement practice, and 
all companies or persons doing business 
with Jarvis will receive a copy of our
Corporate Responsibility Principles. 
We will seek to assist willing suppliers or 
sub-contractors when their performance 
is found to be of poor quality. We will stop
working with any supplier or sub-contractor
that consistently fails to improve their social 
and environmental performance.
Principle 6: Community engagement 
We will work with and in our communities as
part of the service we deliver to support their
growth and development.
We are committed to improving the quality 
of life of the communities in which we
operate. We recognise the social impacts of
our business, and believe in consultation with
local communities about our activities and
about the safety and environmental
implications of our operations. We are aware
that some of our work is in deprived areas,
and we are sensitive to the need to promote
social inclusion through our local community
projects. We are committed to social
responsibility, and believe the success of our
business is contingent on the quality of the
relationships we build with our communities
and legitimate public interest groups.
Principle 7: Continuous improvement 
in Health and Safety 
Safety is our number one priority for
employees, users and sub-contractors. 
We will do all we reasonably can to design,
build and manage safe projects and services.
The health and safety of our employees,
customers and communities, and sub-
contractors, is our number one priority. We
view legal requirements as the minimum
standard for minimising the risk of injury,
ill health, and damage and loss to property
arising from our work activities or equipment.
We are committed to making continued
investments in safety training, monitoring,
and awareness building across our
businesses. We will report on our progress.
We view operational safety and accident
awareness as a responsibility of us all.
Principle 8: Our ecological footprint
We view continuous improvement in our
environmental performance as an integral
part of the services and facilities that we
deliver. We will do this in accordance with
recognised environmental management
systems.
We believe improvements to our
environmental performance can make a
difference to society and to the efficiency
of our core business practices. We are
committed to assessing the impacts of 
our operations on land, water, air, and
biodiversity, and to managing our waste in 
all of its forms by reusing and recycling it,
wherever appropriate. We seek to minimise
the adverse environmental impacts caused
by our work and the services we provide. 
We will work actively to prevent leaks and
spillages, manage any accidents responsibly
and to reduce our use of energy and
materials. We will manage and improve our
environmental performance in accordance
with evolving legal requirements and
international standards. We are also
committed to the continuing certification 
and improvement of our environmental
management systems in key areas of 
our business.
Principle 9: Innovation and risks review
We will use innovation and robust risk
management tools to reduce risk, promote
opportunities and improve the services and
products that we deliver to our customers
and users.
We are committed to continuous innovation
in all aspects of our business and to
maintaining an effective and robust risk
management programme in relation to our
operations, services and products. We are
committed to understanding the needs of 
our customers. We will apply technological
and management innovation to improve the
efficiency and quality of our service provision,
extend our market penetration and to
manage risk and opportunity responsibly.
Progress against the Principles
Principle 1
The recent history of the Group has been
documented over recent annual reports.
Over recent years the Group has fought 
hard to provide Shareholder value in difficult
circumstances and recognition for the
survival of the Group over this period 
has to be given to the improved levels of
Corporate Governance and accountability
within the business. In 2004 at the time many
of the problems of the Group were emerging,
the Board established a new sub committee
of the Board to review Corporate
Governance. The first task of this Committee
was to review the levels of transparency
within the business and the Committee
continues to monitor the improvements in
process that were required.
Principle 2
The improved transparency that arises 
from clearer and simpler process delivery
enables the Board to maintain the integrity 
of the business. The Board has established
clear policies in respect of employment,
procurement, finance and many other areas
and these are monitored within the business.
As part of the independent monitoring the
Group has established a whistleblowing
process which enables any employee to
identify a breach of any policy or to raise
any concerns they might have with the 
Non-Executive members of the board 
via telephone and email hotlines.
Principle 3
As the Group has reduced in size over recent
years a major focus has been on protecting
the rights of our employees by means of
minimising the requirement for compulsory
redundancy, ensuring protection of their
rights on transfer where businesses have
been sold and retraining and redeploying staff
wherever possible. We operate in a unionised
environment and have worked closely with
the appropriate trade unions for the benefit of
our people. We continue to operate training
and retraining programmes to ensure
effective working practices and provide for
career development. We have adopted
policies to encourage diversity and
opportunity and to prevent discrimination 
on the basis of disability, gender, age, 
sexual orientation marital status ethnicity 
or religious belief.
Principle 4
The Group continues to execute its contracts
in partnerships with all stakeholders through,
among other mechanisms, Integrated
Management Teams with its customers.
Company Executive management, on a
monthly basis, reviews the performance  24 Jarvis plc Annual report and accounts 2007
Corporate Social Responsibility
of these partnerships. As part of the Group’s
strategy, business development is focused
on long-term framework agreements
enabling sustainable continuous
improvements.
Principle 5
Jarvis has an active supplier reduction
programme, and a mission to move to fewer
better suppliers in its supply chain. Critical to
any new arrangements that are made are
assessments of a supplier’s safety, social
and environmental standards. Measurement
of supplier’s performance is essential in our
quest for continuous improvement.
New additions to the Jarvis Supply Chain
undergo a rigorous accreditation selection
process, which takes into account a broad
range of criteria to ensure best practice
safety, environmental and commercial
performance in the execution of their duties.
Jarvis applies these same principals to 
its own business to meet and exceed 
its customers’ expectations, now and 
in the future. 
Principle 6
Our employees across the business have
participated in many fundraising projects 
and we have continued with our support
for Rainer, a charity which helps under-
supported young people and young adults 
to reach their full potential. In addition, our
Accommodation Services business faces
directly into the communities in many
deprived areas offering leisure facilities in
our buildings for use by community groups.
Through Jarvis Training Management we
provide opportunities for unemployed 
youth to undertake basic training in a 
variety of areas. 
In our Rail and Plant businesses we try to
ensure that all communities affected by 
our engineering works are fully briefed in
advance. The team are involved in school
safety talks alongside Network Rail and the
British Transport Police as part of the ‘Track
Off’ campaign to educate people, especially
young people, about the dangers and
consequences of the railway and 
railway crime.
Principle 7
Safety continues to be the number one
priority for our employees, sub-contractors
and those affected by our operations.
In recognition of the change in legislation
resulting from the introduction of the
Railways and Other Guided Transport
(ROGS) Regulations Fastline have been
granted a certificate by the Office of Rail
Regulation to confirm that their safety
management system meets the regulatory
requirements necessary for safe operation
as a train operator on main line railways.
All businesses have developed and issued
Safety and Environment improvement plans
and are monitoring the achievement of
challenging but realistic targets set for
improvement.
All businesses have introduced a programme
to actively promote the importance of ‘near
miss’ events, allowing intervention action 
to be taken on the root causes of accidents
before harm can occur.
The audit management systems have been
upgraded to ensure that there is visibility of
areas for improvement and accountability 
for their resolution.
Jarvis Rail and Fastline continue to develop
and introduce to the market innovative
applications of technology that reduces
health and safety risk while maintaining or
increasing levels of productivity. Examples
include the introduction of Slinger
®
5 and
hydraulic lifting beams that reduce the need
for people to work at height, reduce the
number of people needed to operate the
process and reduce the quantity of
supporting vehicle movements.
A particular emphasis was given to
improving safety within the Roads business
with spectacular effects during Jarvis
ownership. An Annual Frequency Rate (AFR)
of 1.4 was reduced to less than 0.65. This
was achieved by focusing on targeted
actions and working on improving the 
culture within the organisation.
A similar focus is being applied to the 
safety performance of JAS FM and safety
continues to improve in Jarvis Fastline, the
trackside AFR has now reduced to 0.23 and
the all accident AFR rate has steadily
reduced to 0.47.  
Principle 8
Jarvis Rail and Fastline continue to operate 
an externally accredited Environment
Management System to meet its legal and
contractual obligations and to understand 
and provide effective management for
environmental impacts and risks that 
arise through its activities.
Environmental Management System
We are committed to the continual
improvement of our environmental
performance under the Jarvis Environmental
Management System (EMS) and during the
period under review have continued to build
on our achievements to date as audited by
Lloyds against the International Standard 
ISO 14001:2004.
Fastline Freight
In June 2006 Fastline Freight began 
full commercial operations transporting
containers between Thamesport and the
North East – via Doncaster Railport terminal.
Fastline Freight is now transporting
containers using its fleet of three 
Class 56 locomotives and 60ft flat wagons.
The service is operational five days a week
and there are already plans to add additional
routes in the near future. As part of the
service the team are now able to arrange
onward road transportation to the final
destination. 
Jarvis Rail and Fastline Group Managing
Director Mike Houghton said, “I am
delighted that Fastline Freight has begun
operations as planned and with a steady
stream of customers. The launch of the
service is the culmination of many months 
of hard work by the Fastline team to bring 
a new, efficient and cost-effective service 
to the market targeting customers who
currently use road haulage, I am confident
that haulage customers will see the
environmental and business benefits of
using rail rather than road freight services.”
The contribution that this business has 
made to reduce environmental pollution is
assessed as removing the transport of some
3,500 containers from road haulage saving
some 67,625 gallons of fuel and 181,235kg
of Carbon Dioxide emissions. 2003
2004
2005
2006
Strc reduces carbon footprint with 100
Trees for Life
Scotland’s magnificent Caledonian forest
now has 100 new trees thanks to the
environmentally conscious actions of
Scotland Track Renewals Company (strc)
following its successful completion of the 
18 month Glasgow North and South Electrics
project. Strc is the first rail company to
become involved in Trees for Life’s ‘Be
Carbon Conscious’ programme and it is
hoped that other companies from within 
the rail industry will follow.
Mindful of the carbon footprint created by
this latest project, strc decided to forge links
with the registered charity Trees for Life, a
Scottish organisation which aims to restore
the Caledonian Forest as a fully functioning,
healthy ecosystem. Strc decided to
contribute 100 trees; a significant donation 
in relation to the CO2 the project emitted.
A spokesperson for Trees for Life said, “We
are really grateful for strc’s donation. We
have pledged to plant 100,000 trees this year
as part of the United Nations Environment
Programme’s ‘Billion Tree’ campaign, and
continued support from strc will help us to
make it a reality.”
Alistair Porter, Senior Project Manager
(Electrical Projects) for strc, commented,
“This is a small but important step in
demonstrating our awareness of the
environmental challenges that face the rail
industry.”
Trees for Life runs the initiative ‘Be Carbon
Conscious’ in which the charity seeks to
raise awareness of the issues around carbon
offsetting. In addition to restoring the native
forest in the Highlands, which has been
reduced to just one per cent of its former
extent, they offer general guidelines on 
how companies can assess the carbon
footprints they create and suggest ways
they can lower their environmental impact. 
Progress on 2006 environmental
objectives
Satisfactory progress has been made on all
objectives with particular success with two
objectives
10% reduction in OTM hydraulic oil spills 
(See Table 1).
There was a small increase in the number 
of spills in 2006 compared with 2005, but a
reduction of over 60 per cent in the amount
of oil spilt with nearly half the amount of oil
lost per spill incident.
Table 1 – 2006 OTM hydraulic oil spills
Number of spill incidents
Amount of hydraulic oil lost in litres (000)
Average oil lost in litres/number of spills
Fastline have converted all of its On Track
Machine (OTM) fleet to biodegradable
hydraulic oil and have introduced a new
specification of hoses. This together with 
an increased preventative maintenance
inspection programme has helped Fastline
reduce the amounts of hydraulic oil lost 
per spill.
Although the actual number of spill incidents
has increased, the average oil lost in litres
per spill has reduced significantly to the
lowest since records began.
Future data will normalise the number of
spills and amounts lost against engine hours
of machine worked, which will give a clearer
picture of number of spills taking into
account the machine’s productivity.
10% reduction in fuel consumption 
(See Table 2).
Reduced consumption of 8,322,576 litres 
of fuel used in 2005-06 compared with 
2004-05 (nearly 40 per cent).
Reduced Carbon Dioxide Emissions of 
22,304,504 kg in 2005-06 compared 
with 2004-05.
Table 2 – Fuel Consumption
Fuel use (Litres)
Jarvis plc Annual report and accounts 2007 25
2000
2001
2002
2003
2004
2005
2006
2000
2001
2002
2003
2004
2005
2006
246810 12 14 16
2000
2001
2002
2003
2004
2005
2006
50 100 150 200 250 300 350 400
1,000,000 5,000,000 10,000,000 15,000,000
0 153045607590105 2000
2001
2002
2003
2004
2005
2006
2000
2001
2002
2003
2004
2005
2006
26 Jarvis plc Annual report and accounts 2007
Corporate Social Responsibility
Road Vehicle Small Plant and OTM CO2
emissions 2000-06
Number of cars/machines
Number with diesel engines
Number with petrol engines
CO2 emissions (Tonnes per M/c/pa)
Conversion factors used from DEFRA web
site.
Notes
1 All road vehicles and small plant data
included from 2005.
2 On Track Machines data added from 2006.
Environmental objectives for 2007
New environmental objectives have been
set for 2007 including the delivery of further
reductions in the consumption of fuel,
carbon dioxide emissions and use of energy. 
Principle 9
As well as formal risk reviews undertaken 
as a normal part of the commercial process
we analyse both industry and company data
on performance and causation of failure or
accident. This enables our teams to clearly
identify areas for performance improvement
and to focus our development efforts. We
are currently working on several projects
which we believe will significantly change
the way in which our industry works.
Our major customer has expressed a wish 
to be able to operate a seven day railway,
where weekend engineering possessions
are minimised with major work being
undertaken in overnight possessions. This
will require significant changes to current
methodologies. We already have a good
track record in this area having designed 
and introduced the first Track Renewal Train
into the UK in 1999-2000 and more recently
delivered the Accutrack
®
process which 
uses our innovative and patented Slinger
®
and Mole plant. We have recently introduced
a new methodology for the installation 
of switch and crossings which enabled 
our teams working with Network Rail to 
install five point ends in a single weekend
possession. There are significant
developments in the final stages of design
which we believe will further revolutionise
the way in which engineering is carried out
on the UK rail network and which will help
deliver the ambition of seven day rail
operations as the norm.
2000
2001
2002
2003
2004
2005
2006
100 500 1,000 1,500 2,000 2,500
100 500 1,000 1,500 2,000 2,500
100 200 300 400 500 600
2000
2001
2002
2003
2004
2005
2006
12345678 Directors’ Remuneration Report
Jarvis plc Annual report and accounts 2007 27
Information not subject to audit
This report, which addresses the
requirements of the Directors’
Remuneration Report Regulations 2002
also forms part of the Group’s report 
of its activities concerning the principles 
of good corporate governance outlined in
the Combined Code. It has been reviewed
and adopted by both the Remuneration
Committee and the Board of Jarvis plc and
will be the subject of a resolution at the
forthcoming Annual General Meeting.
The Remuneration Committee
The Committee determines, on behalf 
of the Board, the policy of the Group for
balanced executive remuneration and
specific remuneration packages for 
each Executive Director and other 
senior employees who report to the 
Chief Executive. This authority extends to
pension rights, terms of service contracts,
and incentive schemes, both equity and
non-equity based. The remuneration of
Non-Executive Directors is a matter
reserved for the Board. Membership of 
the Remuneration Committee currently
comprises Brian Mellitt, Elizabeth Filkin
and Chris Rew. The Chairman of the
Committee throughout the period was 
Brian Mellitt.
During the period the Committee 
met on five occasions to consider, 
inter alia, matters relating to Directors’
remuneration. Geoff Mason, the Company
Secretary during the period under review,
and Bernard Westbrook, the Group
Director of Human Resources, attended
such parts of those meetings as did not
directly affect their own remuneration;
they also provided information and advice
relating to the Directors’ current
entitlements and performance against
targets consistent with agreed policies. 
At the meeting of the Committee to
review Directors’ remuneration,
appropriate consideration was given to
comparative remuneration within both 
a selected peer group of companies and
the FTSE small cap group of companies
measured in terms of activity, market
capitalisation, turnover and employee
numbers using information provided by
New Bridge Street Consultants. Other
services provided by New Bridge Street
Consultants, who were formally appointed
by the Committee on 13 March 2003,
included employee and executive
incentive scheme advice.
Remuneration policy
The key Terms of Reference of the
Committee are: 
1 To ensure that the Group’s remuneration
policies and practices for Executive
Directors and other senior employees
facilitate the employment and motivation
of top quality personnel, and adequately
reward individual contributions made to
the Group, while at the same time
remaining appropriate in terms of the
Group’s performance and in comparison 
to competitor companies.
2 To keep under review the long term
incentive plans and employee share
schemes operated by the Group in light 
of legislative and market developments
and overall remuneration policy, and to
determine the awards of options under
such schemes together with performance
conditions linked thereto.
In order to comply with the Terms of
Reference, the remuneration policy is
based on the following core principles: 
– total rewards are designed to support 
the Group’s strategy and are set at levels
that are competitive within the relevant
market. 
– it remains the general policy of the
Committee not to award share options in
any year which amount to greater than an
Executive Director’s annual salary or to
award performance shares which would
have a value greater than 50 per cent of the
Executive Director’s salary in any one year;
– incentive based awards can only be earned
through the achievement of demanding
performance conditions which are
designed to be aligned with the interests
of the Shareholders in the short, medium
and longer terms; and
– composition of remuneration packages
are designed to maintain a balance
between fixed and variable elements
of remuneration which the Committee
believes is appropriate.
However, during the previous year the 
Board sought and obtained Shareholder
approval for a Management Incentive Plan
specifically designed to incentivise the
senior team and to align them with the
interests of the Shareholders. Under this
scheme during the period under review,
options were granted with a nominal value 
in excess of 100 per cent of his salary to
John O’Kane following his appointment 
to the Board. The scheme was also used
during the period under review to incentivise
certain individuals who at the time were
reporting to the Executive team. During the
period under review options were granted
under the Executive Share Option Plan 
to members of the Executive team. 
In reviewing the performance conditions 
for the exercise of these options the
Remuneration Committee noted previous
advice from major Shareholders about the
appropriate performance criteria which were
to be employed for a company recovering
from financial restructuring and agreed that
the options would only vest after the three
year term, where during the vesting period,
specific share price performance criteria 
had been achieved.
Subsequent to the period end, the
Remuneration Committee noted 
the surrender of options under the
Management Incentive Plan by both the
Chief Executive and the Chairman and
agreed to grant further options to the
Executive Directors in respect of their
potential allocation for the 2007-08 financial
year. These were granted subject to both
share price performance criteria and an
earnings per share performance test.
Total shareholder return 
The graph on page 28 compares the
performance of Jarvis plc Ordinary Shares
with the companies comprising the FTSE
Support Services Index for the last five
years. The Company is a component of this
index. Total Shareholder Return has been
calculated by New Bridge Street Consultants
using data provided by Datastream. 28 Jarvis plc Annual report and accounts 2007
Directors’ Remuneration Report
Elements of remuneration
Basic Salary
The basic salary of the Executive 
Directors is reviewed each year by 
the Remuneration Committee. The 
review is undertaken to ensure that the
remuneration package and benefits for
Executive Directors represents a fair 
return for employment. Due consideration
is given to performance and reward
relative to that of comparable companies
and to the Group’s position and risks to 
the business.
Bonus Scheme
For the period under review the normal
bonus scheme was re-instigated with the
expectation that the financial condition of
the Group would improve during the
period. Bonuses were agreed to be paid 
on the basis of exceptional individual
performance or on the achievement of a
mix of personal and corporate performance
criteria. It is recognised that whilst some 
of the individual performance criteria have
been met the corporate performance
targets which were set at the time of the
previous budget have largely not been met
and whilst the performance of the Group
has improved, the targets set at the
beginning of the period have not been met.
The target bonuses of up to 50 per cent of
basic salary for the Executive team have
therefore not been triggered for the period
and limited bonuses have only been paid
on the basis of exceptional individual
personal performances during the period. 
For the year ahead the Executive Directors
have been set objectives at the beginning
of the year. These objectives are a blend of
common primary objectives for the Group
as a whole and additional objectives in line
with their respective corporate role and the
Group’s strategic direction, which are
personal to each Director. For individual
Directors objectives include: 
– the delivery of the overhead reduction
targets identified in the budget;
– the continuous improvement in the
management of occupational and
operational safety;
– the achievement of relevant
divisional/Group budget for turnover, 
profit and operating cash flow;
– the delivery of profitable forward order
book growth; 
– the development of environmental
sustainability within operations;
– effective risk management; and
– the re-engineering of business processes
to ensure the company derives maximum
benefit from investment in new systems
and that these deliver demonstrable
improvements in Shareholder value.
These performance conditions have been
selected in order to align the individual
Director’s targets with the Group’s overall
business performance objectives, which
include social responsibility and
environmental sustainability targets. 
Performance against objectives is
assessed through a formal process during
and after the year end. Typically this
involves interviews and the review of
objective measurements where targets
represent discrete aims. If the objectives
are achieved, a pre-determined percentage
of salary, currently 50 per cent of basic
salary, is paid in the following financial 
period as a bonus to the Director. The
Remuneration Committee reviews the
performance of each Director after the end
of each financial period and, where the
targets have been achieved and in
recognition of the contractual relationship
thus created, will award the bonus. In the
event that a target has been significantly
exceeded, the Committee has the option
to increase the normal percentage applied,
to reflect that achievement, but within the
overall parameter of a pool comprising 
the on-target earnings achievable by
members of the Executive Committee. 
120
100
80
60
40
20
0
Value (£)
31 Mar 02
Key
Source: Datastream
31 Mar 03 31 Mar 04 31 Mar 05 31 Mar 06 2 Apr 07
Jarvis             FTSE All Share Support Services Index
The above graph illustrates the value at 2 April 2007 of £100 invested in Jarvis on 31 March 2001 compared with the value of 
£100 invested in the FTSE Support Services Index. The other points plotted are the values at the intervening financial year ends. . Jarvis plc Annual report and accounts 2007 29
Employment benefits
Benefits provided to Directors typically
include a fully financed company car or car
allowance, private medical insurance and life
assurance. 
Pensions
The Group contributes to defined
contribution schemes for some of the
Executive Directors. None of the Executive
Directors are members of any of the defined
benefit schemes operated by the Group. 
Share Incentive Schemes
In 2003, Shareholders approved the
introduction of a new Share Option Plan 
and a Performance Share Plan to comply
with ABI guidelines and current best
practice. Although the performance criteria
adopted for recent grants under the Plans
have reflected the need for specific share
price targets, going forward options granted 
under the new Share Option Plan will 
be exercisable on a pro rata basis against 
a range of earnings per share (EPS) based
performance conditions. Performance will 
be measured over a single, three year period.
Vesting of shares under the Performance
Share Plan will be conditional on
achievement of a range of EPS and total
shareholder return performance conditions
with each condition applying to 50 per cent
of the award. Performance will again be
measured over a single three year period. 
Management Incentive Plan
At the 2005 Annual General Meeting the
Company sought and obtained approval 
from Shareholders for the introduction of an
option based Management Incentive Plan.
The plan was designed to be a one-off
arrangement with grants only capable of
being made in the first year from the date 
of adoption by the Board. The authority to
grant further options under the plan has 
now lapsed. Under the scheme, participants
were granted awards over shares with an
aggregate value of up to 200 per cent of
base salary with an exception being made 
for one individual where it was agreed on
recruitment that a specific number of shares
would be granted under option. The vesting
of awards is dependent on the increase in
the Company’s share price with the option
price being set at a volume weighted market
average price over an extended period and
vesting being triggered at price increases 
of 25 per cent, 50 per cent and 75 per cent
with each vesting being for one third of 
the original grant.
Directors’ service agreements
When appointing Executive Directors, 
the Committee considers it appropriate 
to offer Service Agreements with a rolling
one year term which are determinable by 
the employing company upon not less 
than twelve months’ notice, and by the
individual Director upon not less than six
months’ notice. The Group intends to retain
these terms for future appointments,
believing them to be appropriate to the
nature of the business. However, in the
circumstances of Alan Lovell’s engagement
his initial appointment was for a period of
eighteen months with notice provisions
similar to the above. The contract
subsequently reverted to a one year 
rolling term. However, Mr Lovell had
indicated to the Board at an early stage that
he intended to step down once a suitable
replacement had been recruited and a
suitable handover agreed.
The authority of the Committee extends 
to the compensation terms on any 
early termination of a Director’s service
agreement. The Committee considers it 
fair and reasonable to respect these existing
contractual terms in the event of termination
of an Executive Director’s service contract. 
Ordinarily the Director will be entitled to
payment in respect of full salary for their
notice period together with any accrued
holiday entitlement, subject to a balanced
view of reasonable mitigation. Options
granted to the Director may become
exercisable dependent upon the reasons 
for the termination. Each Director’s contract
date is shown in the table shown on page 30.
Non-Executive Directors
Brief details of the letters of appointment
between the Group and the Non-Executive
Directors are set out in the table on page 30.
There are no provisions for compensation on
early termination of these contracts. In
February 2005, in the light of the exceptional
demands made on the Non-Executive
Directors, it was agreed that the period of
notice to be given to them by the Company
be increased from 3 months to 12 months
and that any days service in excess of the 
24 per annum for which they originally
contracted, be remunerated in future at a
rate per day of 1/24 of their basic fee. During
the period under review the Non-Executive
Directors have been called upon to give
additional assistance to the Executive on
fewer occasions than in the previous year. 
The exception to this is Professor Brian
Mellitt who has provided significant
assistance to the Board in his review of the
technical evidence involved in the accident 
at Potters Bar ahead of the planned inquest.
This has involved him undertaking additional
days during the period.
The Non-Executive Directors also receive
additional compensation in respect of the
additional responsibility assumed for chairing
Committees or assuming specific roles. The
following additional fees are paid and are
included in the amounts of Directors’
remuneration disclosed:
Chair of Audit Committee - £10,000 p.a.
Chair of Remuneration Committee - £7,500 p.a.
Senior Independent Director - £5,000 p.a. 30 Jarvis plc Annual report and accounts 2007
Directors’ Remuneration Report
Non-Executive Directors
Effective date of Notice period Notice period
Director appointment by Company by Director
E Filkin 07/08/2003 12 months 3 months
B Mellitt 05/10/2002 12 months 3 months
C J Rew 13/05/2004 12 months 3 months
Information subject to audit 
Directors’ remuneration
The table below reflects amounts paid or confirmed as payable in respect of the financial period ended 2 April 2007.
Pensions 
current Pension
Salary Pension Prior year period prior year
or Fees Benefits Bonus Supplement Total Total Note 4 Note 4
Notes £000 £000 £000 £000 £000 £000 £000 £000
Executive Directors
R W Entwistle 3 292 26 40 – 358 215 59 27
A C Lovell 5 94 6 175 – 275 628 – 49
A Marnoch 3 and 5 33 2 40 – 75 292 5 25
S J Norris 2 161––– 161 225 – –
J P O’Kane 1 192 14 40 – 246 – 28 –
Non-Executive Directors
E Filkin 40––– 40 59 – –
B Mellitt 112––– 112 70 – –
C J Rew 47––– 47 70 – –
The benefits shown in the table include
the use of Company Vehicles, private
medical insurance, car allowance or
reimbursed fuel costs.
Notes
1 Remuneration for J P O’Kane is shown
from the date of his appointment. 
.
2 The comparative remuneration for 
S J Norris includes amounts paid as a 
Non-Executive Director until September
2005.
3 The comparative figures for R W Entwistle
and A Marnoch reflect only the period 
from their appointment to the Board to 
31 March 2006.
4 Directors’ pension contributions comprise
the amounts paid by the Group to defined
contribution arrangements. Pension
contributions are calculated and payable
on basic salary only.
5 The bonus figures paid include a
termination bonus paid to each of 
A C Lovell and A Marnoch of £175,000 
and £40,000 respectively. 
Executive Directors
Effective date Unexpired Notice period Notice period
Director of contract term by Company by Director
R W Entwistle 08/09/2005 Rolling one year 12 months 6 months
A C Lovell 14/10/2004 Resigned 30 June 2006 N/A N/A
A Marnoch 24/02/2005 Resigned 31 May 2006 N/A N/A
S J Norris 08/09/2005 Rolling one year 12 months 6 months
J O’Kane 24/04/2006 Rolling one year 12 months 6 months Jarvis plc Annual report and accounts 2007 31
Director’s shares and share options
(Ordinary shares of 5p each)
Shares allotted during the
Shares held at period including shares
1 April 2006 or subscribed under the Shares sold Shares held
date of appointment Placing and Open Offer during the period at 2 April 2007
R W Entwistle 39,500 1,837 0 41,337
E Filkin 7 0 0 7
S J Norris 2,500 41,976 0 44,476
Subsequent to the end of the period, R W Entwistle acquired a further 28,500 shares on 3 April 2007 at a price of 69.5p per share. No other
shares were bought or sold by Directors during the period 3 April 2007 to 11 June 2007.
Share options
Options held by Executive Directors over ordinary shares under the Share Option Schemes of the Company were as follows.
Further details of the Jarvis share-based payment schemes are given in Note 26 to the Consolidated Financial Statements.
Granted Options 
Options held (lapsed/ held at 
at 1 April 2006 Exercise surrendered) Exercised 2 April 2007 Date of
or date of price during during or date of Date expiry 
appointment Pence the period the period resignation exercisable of option
R W Entwistle (Notes 2 and 3)
Management Incentive Plan Nov 2005 1,000,000 86.73 (1,000,000) – – Note 1 30/11/2010
Savings Related Share Option Scheme April 2006 – 70.00 13,357 – 13,357 01/06/2009 01/12/2009
2003 Share Option Plan October 2006 – 54.50 550,000 – 550,000 04/10/2009 04/10/2016
S J Norris (Notes 2 and 3)
Management Incentive Plan Nov 2005 275,000 86.73 (275,000) – – Note 1 30/11/2010
Savings Related Share Option Scheme April 2006 – 70.00 13,357 – 13,357 01/06/2009 01/12/2009
2003 Share Option Plan October 2006 – 54.50 303,000 – 303,000 04/10/2009 04/10/2016
J P O’Kane (Notes 2 and 3)
Management Incentive Plan Aug 2006 – 56.26 450,000 – 450,000 Note 1 08/08/2011
2003 Share Option Plan October 2006 – 54.50 376,000 – 376,000 04/10/2009 04/10/2016
Notes
1 The options are exercisable in the three
tranches, each on the achievement of an
increase in the share price of the Company
for a sustained period of 10 days. The
tranches are exercisable on the share price
achieving respectively a 25 per cent, 50 per
cent and 75 per cent increase over the
grant price.
2 The options issued under the 2003 Share
Option Plan, as detailed in the table above,
will vest after three years in three separate
tranches. Each tranche, over one-third of
the shares under option, will vest on the
basis of an improvement in share price
against the grant price by 20 per cent, 40
per cent and 60 per cent respectively for a
period of 10 consecutive dealing days prior
to the date of vesting. 
3 Subsequent to the period end Options
were granted under the 2003 Share Option
Plan at a price of 66p per share. Share
options were granted to each of R W
Entwistle, S J Norris and J P O’Kane in the
numbers of 461,400, 250,000 and 315,000
respectively. These options are normally
exercisable between three and ten years
after the date of grant on achievement 
of performance criteria. One-third of the
shares will vest on an improvement of
share price by 25 per cent; two-thirds on 
an improvement of 50 per cent and the
remainder on an improvement of 75 per
cent over the grant price. A further
performance criteria of earnings per 
share growth will be required for shares
exercised after the third anniversary of 
the date of grant.
No options were held by other Directors
during the period under review.
The closing middle market price of the
Ordinary Shares as at 2 April 2007 was 69p
and the range during the period was
between 42.839p and 84.681p.
This report will be submitted for approval 
at the Annual General Meeting of the
Company.
By order of the Board
Mark Akinlade
Secretary
11 June 2007 32 Jarvis plc Annual report and accounts 2007
Directors’ Report
Principal activities and business review
The principal activities of the Group during 
the financial period under review were 
rail infrastructure renewal, plant hire and
facilities management. During the period, the
Group began full commercial operations of its
rail freight transport service and disposed of its
loss-making roads business. The construction
activities of the Group are now discontinued
with only one contract remaining to be
completed. This contract is expected to expire
in the autumn of 2007 and the Group’s role is
to assist with project management.
Review of position and prospects
The Chairman’s and Chief Executive’s
Statements together with the Operating and
Financial Reviews which are contained in this
report between pages 2 and 12 report 
on Jarvis’ principal activities and business
performance during the period and give 
a description of the principal risks and
uncertainties within the business as well as
considering prospects for the future. These
statements and the reviews are included in
this report by reference.
Principal risks
This annual report contains certain forward
looking statements. These statements are
made by the Directors in good faith, based on
the information available to them up to the
time of approval of this report. Actual results
may differ to those expressed in such
statements, depending on a variety of factors.
These factors include customer acceptance of
the Group’s services, levels of demand in the
market, restrictions to market access,
competitive pressure on pricing or additional
costs, failure to retain or recruit key personnel
and overall economic conditions.
A risk inherent in the industry occurs in the
nature, timing and contractual conditions
which exist at the time of contract
procurement and its dependency on one 
large customer with Network Rail. In 2005-06,
Network Rail under-spent its enhancements
budget by £217m, of which the majority was
deferred expenditure. At the end of Q2 2006-
07 Network Rail had an under-spend of £70m
against a budget of £210million. The Office 
of the Rail Regulator in its recent review 
(Q2 2006-07) has urged Network Rail to
produce a delivery schedule with specific
projects identified. If Network Rail’s
anticipated level of spend is not implemented,
the Group’s business, financial position and
cashflows could be adversely affected.
On 26 December 2006, Network Rail
announced that the number of track renewal
contractors operating in Integrated
Management Teams (IMTs) is to be reduced
from six to four with effect from Autumn 2007
to deliver cost savings and accelerate the rate
of efficiency movement. Jarvis believes that
given its pricing structure, history of innovation
and safety record it is well positioned to meet
the main criteria laid down by Network Rail as
part of its review.
Results and dividends
The loss after taxation for the financial period
attributable to Shareholders, dealt with in 
the Consolidated Financial Statements,
amounted to £21.7m (2006: loss £51.3m). The
Directors recommend that no final dividend be
paid in respect of the period (2006: nil). The
loss for the period transferred to reserves is
£21.7m (2006: £51.3m).
Share capital
During the financial period under review
changes were made to the Company’s share
capital as a result of the exercise of warrants
totalling 9,165,555, the placing of 4,602,460
shares on 1 August 2006 and the allotment 
of 38,485,241 shares under the Placing 
and Open Offer which were admitted 
to listing on 2 April 2007. The issued capital 
of the Company at 2 April 2007 stood at
204,379,497 Ordinary Shares of 5p.
Analysis of Shareholders at 2 April 2007
Shareholders Shareholders Shares Shares
Number % Number %
Range of holdings of Ordinary 5p Shares
1-10,000 6,807 96.62 1,603,093 0.78
10,001 – 100,000 133 1.89 4,473,562 2.19
100,001 – 250,000 26 0.37 4,470,794 2.19
Over 250,000 79 1.12 193,832,048 94.84
7,045 100 204,379,497 100
Substantial shareholdings
At 11 June 2007 the Company had been notified of the following interests in three per cent or more of the voting rights over the Company’s
Ordinary Shares. The disclosed shareholdings recognise the interests of different parties in the share capital and therefore some shareholdings
are disclosed by both the beneficial owner and their Nominee holder:
JPMorgan Chase & Co 11.32%
Artemis Investment Management Limited 10.27%
Third Point LLC / Daniel S Loeb 7.88%
The Goldman Sachs Group, Inc. 6.15%
Mellon HBV Alternative Strategies LLC 5.74%
The Nomad Investment Partnership L.P . 4.60%
JGD Management Corp. d/b/a Y ork Capital Management 4.31%
Bank of America Securities Limited 4.14%
Gartmore Investment Limited 3.98%
P . Schoenfeld Asset Management LLP 3.11%
ECO Master Fund Limited 3.05% Jarvis plc Annual report and accounts 2007 33
Financial instruments
Details of the Group’s financial risk
management policies and objectives are
disclosed in the Financial Review on pages 
7 and 8.
Directors
The names of the Directors and Officers who
held office on 2 April 2007 are as follows:
Mr R W Entwistle °
Ms E Filkin * ° † ‡ (Non-Executive)
Professor B Mellitt * ° † ‡ (Non-Executive)
Mr S J Norris ‡
Mr J P O’Kane °
Mr C J Rew * ° † ‡ (Non-Executive)
Company Secretary: G K H Mason.
Members of the * Remuneration, 
° Corporate Governance, † Audit and 
‡ Nomination Committees. Full biographical
details of the Company’s Directors at the date
of the report are given on pages 14 and 15.
A number of changes to the composition of
the Board took place during the period:
Mr J P O’Kane appointed
27 April 2006
Mr A Marnoch resigned 
31 May 2006
Mr A C Lovell resigned 
30 June 2006
Subsequent to the period end Mr G K H
Mason resigned as Company Secretary 
on 31 May 2007. Mr M A A Akinlade was
appointed as Company Secretary with 
effect from the same date.
In accordance with the Company’s Articles 
of Association having each served one three
year term, Christopher Rew and Elizabeth
Filkin will retire by rotation as Non-Executive
Directors. Steven Norris, the Executive
Chairman was first appointed to the Board 
in September 2000 and having been 
re-elected in 2004 will also retire by rotation. 
All of these Directors will offer themselves
for re-election.
Details of the Directors’ Remuneration,
shareholdings and options over the shares 
in the Company are given in the Directors’
Remuneration Report on pages 27 to 31
which forms part of this report.
All of the Executive Directors who served
during the period held service agreements
with the Company, details of which are given
in the Directors’ Remuneration Report on
pages 27 to 31.
Directors’ indemnities
The Directors are entitled to be indemnified
by the Company to the extent permitted 
by law and the Company’s Articles of
Association in respect of all losses arising 
out of or in connection with the execution 
of their powers, duties and responsibilities.
Directors and Officers of the Company 
and its subsidiaries have the benefit of a
Directors’ and Officers liability insurance
policy which provides appropriate cover in
respect of legal actions brought against 
the Directors.
Corporate governance
This is the subject of a separate statement
on pages 16 to 21 which forms an integral
part of this Directors’ report and is intended
to address the requirements of the
Combined Code incorporated in the Listing
Rules issued by the Financial Services
Authority.
Creditor payment policy
When entering into commitments for 
the purchase of services and goods, the
Company gives due consideration to quality,
delivery, price ad the terms of payment.
Suppliers are made aware of these terms.
The Company abides by these terms
whenever it is satisfied that suppliers 
have provided the services or goods in
accordance with agreed terms and
conditions. In the event of disputes, 
efforts are made to resolve them quickly.
During the period ended 2 April 2007, the
Company on average paid its creditors within
57 days (2006: 54 days) of receipt of invoice.
Employment policies
The Directors recognise the need for
communication with employees at every
level. All employees have access to a copy 
of the Annual Report and Accounts, which
together with staff briefings, internal notice-
board statements and newsletters, keeps
them informed of the Group’s progress. 
The Directors are actively considering ways
to increase further the involvement of
employees in the Group’s performance.
The Group continues to be committed to the
health, safety and welfare of its employees
and to observe the terms of the Health 
& Safety at Work Act 1974, and all 
other relevant regulatory and legislative
requirements. It is the policy of the Group
that there shall be no discrimination or less
favourable treatment of employees, workers
or job applicants in respect of race, colour,
ethnic or national origins, religious beliefs,
sex, sexual orientation, disability, political
beliefs, age or marital status.
Full consideration will be given to suitable
applications for employment from disabled
persons, where they have the necessary
abilities and skills for that position, and
wherever possible to re-train employees
who become disabled, so that they can
continue their employment in another
position. Jarvis and its subsidiaries engage,
promote, and train staff on the basis of their
capabilities, qualifications and experience,
without discrimination, giving all employees
an equal opportunity to progress within 
the Group. 
Environmental policy
The Board is fully committed to minimising
any adverse effects that the Group’s
operations may have on the environment 
and to finding alternative ways of operating
where its activities may cause environmental
damage.
Each of the operating businesses has
developed environmental policies and
procedures appropriate to its business 
and these have been co-ordinated at Group
level in order to ensure that the Board’s
commitment is applied consistently
throughout the Group. Further details and
information on key performance indicators
used are provided in the Corporate Social
Responsibility Report on pages 22 to 26.
Ethics and whistleblower policies
The Company has established ethics 
and whistleblowing policies in place and 
has continued to operate these and the
associated whistleblowing structure 
during the financial period under review.
Close company provisions
The Company is not a close company within
the provisions of the Income and Corporation
Taxes Act 1988.
Statement of Directors’ responsibilities
Company law in the United Kingdom
requires the Directors to prepare financial
statements for each financial period, which
give a true and fair view of the state of affairs
of the Company and the Group and of the
profit or loss of the Group for that period. 34 Jarvis plc Annual report and accounts 2007
Directors’ Report
The Directors are required to prepare the
Group Financial Statements in accordance
with IFRS as adopted by the EU and have
elected to prepare the Parent Company
Financial Statements in accordance with 
UK Accounting Standards.
In preparing each of the Group and 
Parent Company Financial Statements, 
the Directors are required to:
– select suitable accounting policies and then
apply them consistently;
– make judgements and estimates that 
are reasonable and prudent;
– for the Group Financial Statements, state
whether they have been prepared in
accordance with IFRS as adopted by 
the EU;
– for the Parent Company Financial
Statements state whether applicable UK
Accounting Standards have been followed;
and
– prepare the financial statements on 
the going concern basis unless it is
inappropriate to assume that the Group and
the Parent Company will continue 
in business.
The Directors confirm that the financial
statements comply with these
requirements.
The Directors are responsible for ensuring
that the Company and the Group maintain
proper accounting records which disclose
with reasonable accuracy at any time the
financial position of the Group and Company
and enable them to ensure that the financial
statements comply with the Companies 
Act 1985. They are also responsible for
safeguarding the assets of the Company
and hence taking reasonable steps for 
the prevention and detection of fraud 
and other irregularities.
The Directors are responsible for the
maintenance and integrity of the corporate
and financial information on the Group’s
website. Legislation in the United 
Kingdom governing the preparation and
dissemination of the financial statements
and other information included in annual
reports may differ from legislation in other
jurisdictions. 
Disclosure of information to Auditors
At the date of making this report each of the
Company’s Directors, as set out on page 33,
confirm the following:
– so far as each Director is aware, there is 
no relevant information needed by the
Company’s Auditors in connection with
preparing their report of which the
Company’s Auditors are unaware; and
– each Director has taken all the steps that he
ought to have taken as a Director in order to
make himself aware of any relevant
information needed by the Company’s
auditors in connection with preparing their
report and to establish that the Company’s
auditors are aware of that information.
Authority to allot securities
At the forthcoming Annual General Meeting
to be held on 26 July 2007, an ordinary
resolution will be proposed in accordance
with Section 80 of the Companies Act 1985
to renew the Directors’ authority to allot the
authorised but unissued share capital of the
Company. The authority sought will be for a
period normally expiring at the time of the
Annual General Meeting in 2008.
Subject to the aforementioned resolution
being sanctioned by Shareholders, authority
will also be sought from Shareholders to
disapply Section 89 of the Companies Act
1985. This authority, which has been sought
from and granted by Shareholders in
previous years, will permit Directors during
the period until the Annual General Meeting
in 2008 to issue for cash no more than five
per cent of the current Issued Share Capital
at the date hereof, without first offering
them pro-rata to existing Shareholders. 
The Directors believe that the resolution,
disapplying Section 89 in this way, is in 
the best interests of the Company.
Going concern
The Directors have a reasonable
expectation that the Company and 
the Group have adequate resources to
continue in operational existence for the
foreseeable future and therefore continue
to adopt the going concern basis in
preparing the financial statements.
Political and charitable donations
The Group made no charitable donations 
during the period (2006: £36,000), and made
no political donations.
Post balance sheet events
Following the sanction by Shareholders 
at an Extraordinary General Meeting held 
on 30 March 2007 approval was given 
by the Court on 2 May for the reduction
of the share premium account of the
Company with the amount of the reduction
being applied to the deficit on the profit and
loss account of the Company.
On 4 June 2007 the Company announced
the signing of Commercial Agreements 
for the termination of four Facilities
Management contracts in its
Accommodation Services business. 
Auditors
RSM Robson Rhodes LLP have announced
their intention to merge their audit practice
with Grant Thornton (UK) LLP with effect
from 1 July 2007. Accordingly a resolution
to appoint either Robson Rhodes LLP or
(subject to such merger having completed)
its successor firm, Grant Thornton (UK) LLP ,
as auditors of the Company and to authorise
the Directors to fix their remuneration will
be proposed at the Annual General Meeting.
By order of the Board
Mark Akinlade
Secretary
11 June 2007 Jarvis plc Annual report and accounts 2007 35
Independent Auditors’ Report
We have audited the Group and Parent
Company financial statements (“the 
financial statements”) of Jarvis plc for the
period ended 2 April 2007 which comprise 
the Consolidated Income Statement, the
Consolidated and Parent Company Balance
Sheets, the Consolidated Cash Flow
Statement, the Consolidated Statement 
of Recognised Income and Expense and
related notes. These financial statements
have been prepared under the accounting
policies set out therein. We have also 
audited the information in the Directors’
Remuneration Report that is described as
having been audited. 
This report is made solely to the Company’s
Shareholders, as a body, in accordance with
Section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we
might state to the Company’s Shareholders
those matters we are required to state to
them in an Auditors’ report and for no other
purpose. To the fullest extent permitted 
by law, we do not accept or assume
responsibility to anyone other than the
Company and the Company’s Shareholders 
as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of Directors 
and auditors
The Directors responsibilities for preparing 
the Annual Report and the Group financial
statements in accordance with applicable 
law and International Financial Reporting
Standards (IFRSs) as adopted for use in 
the European Union, and for preparing the
Parent Company financial statements and 
the Directors’ Remuneration Report in
accordance with applicable law and United
Kingdom Accounting Standards are set out in
the Statement of Directors’ Responsibilities 
on pages 33 and 34.
Our responsibility is to audit the financial
statements and the part of the Directors’
Remuneration Report to be audited in
accordance with relevant legal and regulatory
requirements and International Standards on
Auditing (UK and Ireland).
We report to you our opinion as to whether
the financial statements give a true and fair
view and whether the financial statements
and the part of the Directors’ Remuneration
Report to be audited have been properly
prepared in accordance with the Companies
Act 1985 and whether, in addition, the Group
financial statements have been properly
prepared in accordance with Article 4 of the
IAS Regulation. We also report to you if, in
our opinion, the Company has not kept proper
accounting records, if we have not received
all the information and explanations we
require for our audit, or if information
specified by law regarding directors’
remuneration and other transactions is 
not disclosed.
We review whether the Corporate
Governance Statement reflects the
Company’s compliance with the nine
provisions of the 2003 FRC Combined 
Code specified for our review by the Listing
Rules of the Financial Services Authority, and
we report if it does not. We are not required
to consider whether the Board’s statements
on internal control cover all risks and controls,
or form an opinion on the effectiveness of the
Group’s corporate governance procedures or
its risk and control procedures. 
We read other information contained in 
the Annual Report, and consider whether 
it is consistent with the audited financial
statements. The other information comprises
only the Directors’ Report, the unaudited part
of the Directors’ Remuneration Report, the
Chairman’s Statement, the Chief Executive’s
Statement, the Finance Review, the
Operating Review and the Corporate
Governance Report. We consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the financial
statements. Our responsibilities do not
extend to any other information.
We report to you whether in our opinion the
information given in the Directors’ Report is
consistent with the financial statements. 
Basis of audit opinion
We conducted our audit in accordance with
International Standards on Auditing (UK and
Ireland) issued by the Auditing Practices
Board. An audit includes examination, on 
a test basis, of evidence relevant to the
amounts and disclosures in the financial
statements and the part of the Directors’
Remuneration Report to be audited. It also
includes an assessment of the significant
estimates and judgements made by the
Directors in the preparation of the financial
statements, and of whether the accounting
policies are appropriate to the Group’s and
Company’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as 
to obtain all the information and explanations
which we considered necessary in order to
provide us with sufficient evidence to give 
reasonable assurance that the financial
statements and the part of the Directors’
Remuneration Report to be audited are 
free from material misstatement, whether
caused by fraud or other irregularity or error.
In forming our opinion we also evaluated
the overall adequacy of the presentation 
of information in the financial statements 
and the part of the Directors’ Remuneration
Report to be audited.
Opinion
In our opinion: 
– the Group financial statements give a true
and fair view, in accordance with IFRSs as
adopted for use in the European Union, 
of the state of affairs of the Group as at 
2 April 2007 and of its loss for the period
then ended; 
– the Group financial statements have been
properly prepared in accordance with the
Companies Act 1985 and Article 4 of the 
IAS Regulation;
– the Parent Company financial statements
give a true and fair view, in accordance with
United Kingdom Generally Accepted
Accounting Practice, of the state of affairs 
of the Parent Company as at 2 April 2007; 
– the Parent Company financial statements
and the part of the Directors’ Remuneration
Report to be audited have been properly
prepared in accordance with the
Companies Act 1985; and
– the information given in the Directors’
Report is consistent with the financial
statements.
RSM Robson Rhodes LLP
Chartered Accountants and 
Registered Auditors
Leeds
11 June 2007 36 Jarvis plc Annual report and accounts 2007
Period ended Y ear ended 
2 April 31 March
2007 2006
Restated*
Notes £m £m
Continuing operations
Revenue 2, 3 306.7 353.8 
Cost of sales (265.1) (294.9)
Gross profit 41.6 58.9
Administration expenses (37.7) (48.4)
Operating profit before non-recurring costs 4 3.9 10.5
Non-recurring costs 5 (13.4) (1.8)
Operating (loss) / profit (9.5) 8.7
Finance income 3.4 1.9
Finance expense (8.0) (69.7)
Net finance costs 6 (4.6) (67.8)
Loss before taxation (14.1) (59.1)
Taxation 8 2.0 5.4 
Loss for the period from continuing operations (12.1) (53.7)
Post-tax (loss) / profit from discontinued operations 9 (9.6) 2.4
Loss for the period attributable to equity shareholders (21.7) (51.3)
Basic and diluted (loss) /earnings per share
–  Continuing operations (7.5)p (37.3)p
–  Discontinued operations (6.0)p 1.7 p
Total 10 (13.5)p (35.6)p
*Details of the 2006 restatement are given in Notes 8 and 14 to the Consolidated Financial Statements.
Consolidated Statement of Recognised 
Income and Expense
For the period ended 2 April 2007
Period ended Y ear ended 
2 April 31 March
2007 2006
Restated*
Notes £m £m
Net actuarial gains on defined benefit pension schemes 19.6 15 11.4 19.6
Tax in respect of items taken directly to equity 14 (3.5) (5.3)
Net income recognised directly in equity 22 .7.9 14.3
(Loss) / profit for the period
– From continuing operations (12.1) (53.7)
– From discontinued operations (9.6) 2.4
Total recognised expense for the period (13.8) (37.0)
Effect of first time adoption of IAS 32 and IAS 39 – 1.5
Total recognised expense attributable to equity shareholders (13.8) (35.5)
*Details of the 2006 restatement are given in Notes 8 and 14 to the Consolidated Financial Statements.
Consolidated Income Statement
For the period ended 2 April 2007 Jarvis plc Annual report and accounts 2007 37
Consolidated Balance Sheet
At 2 April 2007
2 April 31 March
2007 2006
Restated*
Notes £m £m
Non-current assets 
Goodwill 11 – 0.7 
Property, plant and equipment 12 22.8 28.0 
Interests in associates 13 – 2.3 
Interests in joint ventures 13 – 1.0 
Deferred tax assets 14 10.0 7.3 
Retirement benefit assets 15 36.4 22.0 
69.2 61.3
Current assets
Inventories 16 3.4 7.0 
Trade and other receivables 17 87.0 104.8 
Cash and cash equivalents 27.6 9.5
118.0 121.3
Assets held for sale 19 – 0.4
Total assets 187.2 183.0
Current liabilities
Borrowings 20 18.3 28.3
Trade and other payables 22 113.8 139.3
Current tax liabilities 1.0 0.5
Provisions 23 6.4 6.4
139.5 174.5
Non-current liabilities
Borrowings 20 32.9 3.6
Retirement benefit obligations 15 17.0 17.9 
Deferred tax liabilities 14 11.2 6.6 
Provisions 23 0.9 8.3
62.0 36.4
Liabilities associated with assets held for sale 19 – 0.3 
Total liabilities 201.5 211.2
Net liabilities (14.3) (28.2)
Equity 
Share capital 24 10.2 7.6 
Share premium 25 581.4 556.6 
Capital redemption reserve 25 7.2 7.2
Other reserve 25 89.7 89.7 
Accumulated losses 25 (702.8) (689.3)
Equity shareholders’ deficit (14.3) (28.2)
*Details of the 2006 restatement are given in Notes 8 and 14 to the Consolidated Financial Statements.
The Financial Statements were approved by the Board on 11 June 2007 and were signed on its behalf by:
R Entwistle Chief Executive
J O’Kane Group Finance Director 38 Jarvis plc Annual report and accounts 2007
Consolidated Cash Flow Statement
For the period ended 2 April 2007
Period ended Y ear ended 
2 April 31 March
2007 2006
Notes £m £m
Operating activities
Cash flows from operating activities 31 (21.0) (32.4)
Restructuring and redundancy costs paid (7.7) (16.8)
Income taxes received 1.0 – 
Net interest costs paid (7.5) (7.4)
Net cash used in operating activities (35.2) (56.6)
Investing activities
Dividends received from joint ventures and associates 3.2 0.6 
Purchase of property, plant and equipment (4.2) (8.1)
Disposal of businesses, net of cash and cash equivalents disposed 5.1 19.1 
Disposal of property, plant and equipment – 0.4 
Disposal of property assets classified as held for sale – 0.8
Net cash from investing activities 4.1 12.8 
Financing activities
Net proceeds from issue of ordinary shares 27.4 43.9
Proceeds from new debt 51.2 24.0
Repayment of old debt (29.1) (21.9)
Finance lease principal repayments (0.5) (1.2) 
Net cash from financing activities 49.0 44.8 
Net increase in cash and cash equivalents 17.9 1.0
Opening cash and cash equivalents 9.7 8.7
Closing cash and cash equivalents 27.6 9.7
Cash and cash equivalents comprise:
– Unrestricted cash 24.7 5.6 
– Restricted use cash* 2.9 3.9 
27.6 9.5
Net cash in disposal groups held for sale – 0.2
Total cash and cash equivalents 27.6 9.7 
*Use is restricted to certain contracts in accordance with defined contractual obligations.  Jarvis plc Annual report and accounts 2007 39
Notes to the Consolidated Financial Statements
1 Summary of significant accounting policies
1.1 Basis of preparation 
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union (EU) and in accordance with the provisions of the Companies Act 1985. The Company has elected to
prepare its Parent Company Financial Statements in accordance with UK Generally Accepted Accounting Principles (UK GAAP). These 
are presented on pages 65 to 68.
The Group has applied all accounting standards and interpretations issued by the International Accounting Standards Board and the
International Financial Reporting Interpretations Committee (IFRICs) relevant to its operations and effective at the time of preparing 
these statements. 
The results presented are for the financial year 1 April 2006 to 2 April 2007, the Group having chosen to extend its reporting period by two
days to incorporate the Placing and Open Offer transaction completed on 2 April 2007. The comparative results are for the financial year 
1 April 2005 to 31 March 2006.
The Consolidated Financial Statements are prepared on the historical cost basis, except that share-based payments and retirement assets
and liabilities are stated at fair value.
The preparation of financial statements in accordance with IFRS require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, income and expenses, which may differ from actual results. The estimates and assumptions that
have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year
are with regard to the accounting for long-term contracts and defined benefit pension schemes, the policies for which are detailed in Notes
1.20 and 1.17 respectively. Defined benefit pension schemes are accounted for in accordance with IAS 19 – Employee Benefits which
requires estimates to be made in relation to future salary increases, rates of increase of pension benefits, mortality rates and inflation. 
Long-term contracts are accounted for in accordance with IAS 11 – Construction Contracts which require estimates to be made for 
future contract costs and revenues.
1.2 Basis of consolidation
The Consolidated Financial Statements comprise the financial statements of Jarvis plc and subsidiaries controlled by the Group at each
period end together with the Group’s share of the results of associates and joint ventures, as detailed below.
(i) Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group, generally where there is a shareholding of more than one half of 
the voting rights, and deconsolidated from the date on which control ceases. The financial statements of subsidiaries are prepared using
accounting policies consistent with those of the Group.
Inter-company balances and transactions including unrealised profits arising from intra-group transactions have been eliminated in full.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
(ii) Associates and joint ventures
An associate is an entity over which the Group is in a position to exercise significant influence through participation in the financial 
and operating policy decisions of the investee, but which is not a subsidiary or a jointly controlled entity. A joint venture is a contractual
arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control exists when the
strategic financial and operating decisions relating to the activity require the unanimous consent of the parties.
The results, assets and liabilities of an associate or joint venture are incorporated in these financial statements using the equity method 
of accounting. Under the equity method, the investment in an associate or joint venture is carried in the balance sheet at cost plus 
post-acquisition changes in the Group’s share of net assets of the associate or joint venture, less distributions received and less any
impairment in the value of the investment. The Consolidated Cash Flow Statement reflects the Group’s share of the results after tax of 
the associate or joint venture. The Consolidated Statement of Recognised Income and Expense (SORIE) reflects the Group’s share of
any income and expense recognised by the associate or joint venture outside the Consolidated Income Statement.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s
interest in the associate or joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of impairment 
of the asset transferred. 
When the Group’s share of losses in an associate or joint venture exceed its interests in the investment, the Group does not recognise
further losses, unless it has incurred obligations or made payments on its behalf. The Group ceases to use the equity method of accounting
on the date from which it no longer has significant influence in the associate or joint venture, or when the interest becomes held for sale. 40 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
1.3 Segmental reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns 
that are different from those of other business segments. The Group is organised into three main business segments: Rail, Plant and
Accommodation Services. The secondary format for segmental information is geographical area, which is based on the location of the 
Group’s operations.
1.4 Taxation
(i) Current taxation
Tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items 
that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates and laws that have been enacted 
or substantively enacted by the balance sheet date.
(ii) Deferred taxation
Deferred taxation is provided in full, using the balance sheet liability method, on temporary differences arising between the carrying
amounts of assets and liabilities used for financial reporting purposes and the amounts used for taxation purposes. Deferred taxation 
is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to
apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred taxation is provided in full on taxable temporary differences associated with pension scheme surpluses. Deferred tax assets
arising from unused tax losses eligible to cover such taxable temporary differences are recognised accordingly.
Deferred tax assets are recognised to the extent that it is probable future taxable profit will be available against which the temporary
differences can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will 
be realised. This requires judgment to be made in respect of the forecast of future taxable income.
Deferred taxation is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where
the Group controls the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future.
Accruals for tax contingencies require management to make judgements and estimates of ultimate exposures in relation to tax audit 
issues. Tax benefits are not recognised unless the tax positions can be ascertained with reasonable certainty. Once considered probable,
management reviews each material, tax benefit to assess whether a provision should be taken against a full recognition of that benefit on 
the basis of potential settlement through negotiation or litigation.
1.5 Foreign currencies
(i) Functional and presentational currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the ‘functional currency’). The Consolidated Financial Statements are presented in sterling, 
which is the Group’s functional and presentational currency.
(ii) Transactions and balances
In individual companies, transactions in foreign currencies are recorded in the functional currency by applying the rate of exchange ruling 
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency 
at the exchange rate ruling at the balance sheet date. Any resulting exchange differences are recognised in the Consolidated Income
Statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated into the
functional currency using the rate of exchange as at the dates of the initial transactions. Non-monetary assets and liabilities measured at fair
value in a foreign currency are translated into the functional currency using the rate of exchange at the date the fair value was determined.
In the Consolidated Financial Statements, the assets and liabilities of non-sterling functional currency subsidiaries, associates or joint
ventures, including goodwill, are translated into sterling at the rate ruling at the balance sheet date. The results and cash flows of non-
sterling functional currency subsidiaries, associates or joint ventures are translated into sterling at average rates of exchange for the year.
Exchange adjustments, arising when the opening net assets and the profits for the year retained by non-sterling functional currency
subsidiaries, associates or joint ventures are translated into sterling, are taken to a separate component of equity and reported in 
the SORIE. 
On disposal of non-sterling functional currency subsidiaries, associates or joint ventures, the cumulative amount recognised in equity
relating to that particular non-sterling operation is recognised in the Consolidated Income Statement. Jarvis plc Annual report and accounts 2007 41
Notes to the Consolidated Financial Statements
1.6 Goodwill
Any excess of the cost of the acquisition over net fair value of the identifiable assets and liabilities of the acquired subsidiary, associate or
joint venture at the acquisition date is recognised as goodwill. Goodwill on acquisition is initially measured at cost being the excess of the
cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is reviewed annually or more
frequently if events or changes in circumstances indicate that the carrying value may be impaired.
At the acquisition date, any goodwill acquired is allocated to each of the cash generating units expected to benefit from the combination’s
synergies. For this purpose cash generating units are defined as business segments. Impairment is determined by assessing the
recoverable amount of the cash generating unit to which the goodwill relates. Where the recoverable amount of the cash generating 
unit is less than the carrying amount, an impairment loss is recognised.
Goodwill arising on business combinations prior to 1 April 2004 is stated at the previous UK GAAP carrying amount.
On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the profit or loss on disposal.
1.7 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
The initial cost of an asset comprises the purchase price or construction cost, any costs directly attributable to bringing the asset into
operation, the initial estimate for any decommissioning obligations, and, for qualifying assets, any borrowing costs. The purchase price or
construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. The capitalised
values of any finance leases are also included within property, plant and equipment. 
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate. Expenditure on major
maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and overhaul costs. 
Inspection costs associated with major maintenance programmes are capitalised and amortised over the period to the next inspection.
Other repairs and maintenance costs are charged to the income statement during the financial period in which they are incurred. 
Where an asset or part of an asset that was separately depreciated and is now written off is replaced, and it is probable that future economic
benefits associated with the item will flow to the Group, and the cost of the item can be measured reliably, the expenditure is capitalised. 
Depreciation on assets is calculated using the straight-line method to allocate the cost of each asset to its residual value over its estimated
useful life as follows:
Leasehold land and buildings Over the period of the lease
Leasehold improvements 5 to 20 years or period of the lease if shorter
Plant and machinery 3 to 15 years 
Fixtures and fittings 4 to 10 years 
Office equipment 2 to 4 years 
The expected useful lives and residual values of property, plant and equipment are reviewed on an annual basis and, if necessary, changes 
in expected useful lives and residual values are accounted for prospectively.
1.8 Impairment
The carrying amounts of goodwill with indefinite useful lives are reviewed for impairment annually or more frequently where events or
changes in circumstances indicate that the carrying amount may be impaired. 
The carrying amount of property, plant and equipment with finite lives is reviewed for impairment when events or changes in circumstances
indicate that the carrying amount may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of any impairment loss. Where the asset does not generate cash flows that are independent 
of other assets, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.
1.9 Assets held for sale
Assets and disposal groups classified as held for sale are measured at the lower of the carrying amount and the fair value less costs to sell.
Assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than
through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale
in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
Property, plant and equipment and intangible assets, once classified as held for sale, are not depreciated. 42 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
1.10 Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is determined by the first in first out method and comprises direct
purchase costs, and, where applicable, costs of production, transportation and any directly attributable overheads. 
1.11 Trade and other receivables
Trade receivables are measured at amortised cost less appropriate allowances for estimated irrecoverable losses.
There are monies held in trust to complete construction contracts exited in 2005. The trusts are in the name of Jarvis Construction (UK)
Limited but the funds standing to the credit of them are available only for the purposes specified by each trust and are directly related to
funding construction liabilities. The funds are not available to Jarvis plc and Jarvis Construction (UK) Limited except for these purposes. 
The cash in each trust is only made available at the point when payments are made in accordance with the purposes of the trust. For this
reason the cash in these trusts is recognised within trade and other receivables.
1.12 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at amortised cost and comprise cash at bank and in hand and deposits available
upon demand. Cash at bank includes amounts where the use is restricted to certain contracts in accordance with defined contractual
obligations. For the purposes of the Consolidated Cash Flow Statement, cash and cash equivalents also include bank overdrafts, as they 
are an integral part of the Group’s cash management.
1.13 Borrowings
Borrowings are measured at amortised cost and are classified as current liabilities unless the Group has an unconditional right to defer 
the settlement of the liability for at least twelve months. The difference between the proceeds and the redemption value is recognised 
in the Consolidated Income Statement over the life of the borrowings using the effective interest rate method. Facility fees are expensed 
as incurred.
1.14 Trade payables
Trade payables are measured at amortised cost. 
1.15 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and when it is probable
that an outflow of resources will be required to settle the obligation. 
Long-term provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the balance sheet date. The present value of long-term provisions is determined by discounting the expected future cash flows
at a UK risk free pre-tax rate that reflects the current market assessment of the time value of money and where appropriate, the risks
specific to the liability. Where discounting is used, the change in the provision due to the passage of time and changes in discount rates 
is included within other finance expense. 
1.16 Leases
Leases of plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases.
They are capitalised at the lease’s inception at the lower of the fair value of the plant and equipment and the present value of the minimum
lease payments, and depreciated over the shorter of the asset’s useful life and the lease term.
Lease payments are apportioned between the finance charge and the reduction of the lease obligation so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged to the Consolidated Income Statement, the corresponding
rental obligations, net of finance charges, are included in borrowings.
Leases where the Group does not retain substantially all the risks and rewards of ownership are classified as operating leases. Payments
made under operating leases are charged to the income statement on a straight-line basis over the period of the lease.
1.17 Retirement benefits
The Group operates both defined contribution and defined benefit pension schemes. The Group contributes to these schemes according 
to the arrangements agreed with employees. Contributions paid by the Group to defined contribution pension schemes are charged to the
income statement as they become payable in accordance with the rules of the schemes.
The defined benefit schemes are valued every three years by a qualified actuary, the rates of contribution payable being determined by 
the actuary. In the intervening years the appropriateness of the last valuation is reviewed annually. Obligations to employees are measured
at discounted present value whilst scheme assets are measured at fair value. The operating and finance costs of such schemes are
recognised separately in the Consolidated Income Statement. Service costs are spread systematically over the lives of employees and
financing costs are recognised in full in the periods in which they arise. Actuarial gains and losses are recognised immediately in the SORIE.
The asset or liability recognised in the Consolidated Balance Sheet is the fair value of scheme assets less the present value of the defined
benefit obligations. Jarvis plc Annual report and accounts 2007 43
Notes to the Consolidated Financial Statements
1.18 Share-based payments
The Group operates equity-settled share-based payment schemes for certain employees. The cost of share-based payments is measured 
at fair value at the date of grant, excluding the effect of non market-based vesting conditions. The cost is recognised in the Consolidated
Income Statement on a straight-line basis over the vesting period with the corresponding amount credited to equity, based on an estimate
of the number of shares that will eventually vest. The fair value of employee share option plans is calculated using the Black-Scholes-Merton
valuation model.
1.19 Revenue
Revenue represents the fair value of consideration receivable, excluding value added tax, for services supplied to external customers.
Revenue from Facilities Management contracts is recognised according to the services provided to date. The recognition of revenue 
from construction and other long-term contracts is detailed in Note 1.20. 
1.20 Long-term contracts 
When the outcome of a long-term contract can be estimated reliably, contract revenue is recognised by reference to the degree of
completion of each contract, based on the amounts certified and to be certified by the customer. 
Incentive payments and insurance claims arising from long-term contracts are included where they have been agreed with the client.
Variations and other claims are included where it is probable that the amount will be settled. When the outcome of a long-term contract
cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable those costs will 
be recoverable.
Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed
total contract revenue, the expected loss is recognised immediately. 
All costs incurred in advance of contracts being awarded are written off to the Consolidated Income Statement, until the date that, in the
opinion of the Directors, it is probable that the contract will be secured. Costs incurred during the period between the contract being
probably secured and the eventual award is carried as work in progress to the extent they are expected to be recovered. 
Where revenue recognised exceeds progress billings, the balance is shown as due from customers on long-term contracts within trade and 
other receivables. Where progress billings exceed costs incurred, the balance is shown as due to customers on long-term contracts within
trade and other payables.
Where the Group continues to have responsibility for construction project assets from legacy PFI contracts, recognition of profit is deferred
according to the stage of completion of construction.
1.21 Financial instruments
The Group’s principal financial instruments comprise bank loans, lease finance and cash. The purpose of these financial instruments is to
finance the Group’s operations. The Group has various other financial instruments such as trade receivables and trade payables, which arise
directly from its operations.
If appropriate, the Group enters into derivative transactions, principally interest rate swaps and forward currency purchases, to manage
material interest rate and foreign exchange risks arising from the Group’s operations and its sources of finance. The Group Treasury
Department’s policy is to use purchased options, swaps and other derivative instruments subject to Board approval and only to the extent
that such instruments form part of the hedging policy to establish a known rate of exchange or known interest rate. It is the Group’s policy
that no trading in financial instruments for speculative purposes shall be undertaken.
Financial risk management disclosures are included in the Financial Review on pages 7 and 8. 44 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
2 Segmental analysis for continuing business 
Segmental information is presented in respect of the Group’s business segments, which are the primary format of segmental reporting and
reflect the Group’s management reporting structure. The Group is organised into three main business segments:
Rail – provides rail infrastructure works to the UK rail industry, including rail renewal, major track development, electrical and signalling 
services.
Plant – provides on-track machinery, small plant equipment and manages an extensive fleet of purpose-built vehicles for the rail and other
industries.
Accommodation Services – undertakes Facilities Management and residual construction operations and, following the disposal of the
Prismo Road Markings business, includes the results from the Herefordshire County Council support services contract.
Inter-segment pricing is determined on an arm’s length basis.
Discontinued operations in the period ended 2 April 2007 relate to the previously reported Roads segment. The disclosure in respect of the
segmental information for discontinued operations is shown in Note 9 to the Consolidated Financial Statements.
2.1 Performance by business segment for the period ended 2 April 2007
Centre,
Accom- eliminations
modation and
Rail Plant Services unallocated Total
£m £m £m £m £m
External revenue 142.3 68.0 96.4 – 306.7
Inter-segment revenue – 35.8 – (35.8) –
Total revenue 142.3 103.8 96.4 (35.8) 306.7
Operating profit /(loss) before 
non-recurring costs 9.4 13.3 1.3 (20.1) 3.9
Non-recurring costs (1.8) (1.9) (8.9) (0.8) (13.4)
Operating profit / (loss) 7.6 11.4 (7.6) (20.9) (9.5) 
Centre recharges (5.0) (7.4) (3.4) 15.8 –
Operating profit / (loss) after centre recharges 2.6 4.0 (11.0) (5.1) (9.5)
Net finance costs (4.6)
Taxation 2.0
Loss for the period from continuing operations (12.1)
Segment assets 53.7 60.6 29.5 5.8 149.6
Unallocated assets – – – 37.6 37.6
Total assets 53.7 60.6 29.5 43.4 187.2
Segment liabilities (42.0) (32.0) (44.3) (19.8) (138.1)
Unallocated liabilities – – – (63.4) (63.4)
Total liabilities (42.0) (32.0) (44.3) (83.2) (201.5)
Net assets /(liabilities) 11.7 28.6 (14.8) (39.8) (14.3)
Capital expenditure – 4.5 0.1 – 4.6
Depreciation 0.2 2.8 0.1 0.1 3.2
Unallocated assets represent cash and cash equivalents, and deferred tax assets. Unallocated liabilities represent current and non-current
borrowings, current tax liabilities and deferred tax liabilities. Jarvis plc Annual report and accounts 2007 45
Notes to the Consolidated Financial Statements
2.2 Performance by business segment for the year ended 31 March 2006 (restated)
Centre,
Accom - eliminations
modation and Discontinued
Rail Plant Services unallocated operations Total
£m £m £m £m £m £m
External revenue 188.5 58.2 107.1 – – 353.8
Inter-segment revenue – 59.3 0.2 (59.5) – –
Total revenue 188.5 117.5 107.3 (59.5) – 353.8
Operating profit /(loss) 
before non-recurring costs 18.2 22.6 (1.1) (29.2) – 10.5
Non-recurring costs (0.4) (0.6) (0.2) (0.6) – (1.8)
Operating profit / (loss) 17.8 22.0 (1.3) (29.8) – 8.7
Centre recharges (8.9) (8.2) (4.3) 21.4 – –
Operating profit / (loss) after centre recharges 8.9 13.8 (5.6) (8.4) – 8.7
Net finance costs (67.8)
Taxation 5.4
Loss for the year from continuing operations (53.7)
Segment assets 51.4 49.5 42.7 (8.4) 30.6 165.8
Unallocated assets – – – 16.8 – 16.8
Assets held for sale –––– 0.4 0.4
Total assets 51.4 49.5 42.7 8.4 31.0 183.0
Segment liabilities (57.7) (34.4) (65.9) 0.8 (15.2) (172.4) 
Unallocated liabilities – – – (38.5) – (38.5)
Liabilities associated with assets held for sale –––– (0.3) (0.3)
Total liabilities (57.7) (34.4) (65.9) (37.7) (15.5) (211.2)
Net (liabilities)/assets (6.3) 15.1 (23.2) (29.3) 15.5 (28.2)
Capital expenditure – 7.3 0.1 – 0.7 8.1
Depreciation 0.3 3.6 0.3 0.3 1.7 6.2
Segmentals for the year ended 31 March 2006 have been restated to reflect Rail and Plant results presented as separate segments, and 
the Accommodation Services segment that now includes the results of the Herefordshire County Council support services contract. The
assets and liabilities presented for discontinued operations relate to the Prismo Road Markings business and the Accord Jarvis Limited 
joint venture that have been sold in the period ended 2 April 2007, in accordance with the presentation requirements of IFRS 5.
2.3 Performance by geographic origin 
The Group’s trading activities are all transacted in Europe.
3 Revenue
Revenue from continuing operations is analysed below.
2007 2006
£m £m
Service revenue 292.8 326.1
Construction contract revenue 13.9 27.7
306.7 353.8 46 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
4 Operating profit before non-recurring costs
Operating profit before non-recurring costs is stated after charging / (crediting):
2007 2006
£m £m
Loss on disposal of property, plant and equipment – 0.2
Repairs and maintenance expenditure on property, plant and equipment 9.2 16.0
Goodwill written off 0.7 –
Trade receivables impairment 0.1 1.4
Inventories (impairment  reversal) / impairment (0.2) 0.3
Cost of inventories recognised as an expense 2.2 2.3 
Depreciation of property, plant and equipment 3.2 4.5
Operating lease rentals 18.3 24.9
Fees payable to Company’s auditor for the audit of the Consolidated Financial Statements and Parent Company 0.2 0.2
Fees payable to the Company’s auditor for other services
– Audit of the Company’s subsidiaries 0.4 0.5
– Other services supplied pursuant to legislation 0.1 0.1
– Services relating to corporate finance transactions 0.6 0.8
5 Non-recurring costs
2007 2006
£m £m
Termination costs of Facilities Management contracts 6.9 –
Provision for construction defects 1.6 –
Provision for onerous leases – (1.3)
Redundancy costs 4.6 1.5
Professional fees associated with restructuring 0.3 1.6
13.4 1.8
The termination costs of Facilities Management contracts relate to the costs associated with the termination of the three major 
loss-making contracts. The provision for construction defects relates to the estimated costs of completing outstanding defects on 
old construction contracts.
6 Net finance costs
2007 2006
£m £m
Finance income
Interest receivable from short term bank deposits 0.2 0.1
Net finance income from defined benefit pension schemes 3.1 1.7
Other interest 0.1 0.1
3.4 1.9
Finance expense
Interest payable on bank loans (6.7) (6.5)
Finance charges as a result of Debt for Equity Exchange – (61.9)
Finance charges payable under finance leases (0.1) (0.2)
Other interest (1.2) (1.1)
(8.0) (69.7)
Net finance costs (4.6) (67.8)  Jarvis plc Annual report and accounts 2007 47
Notes to the Consolidated Financial Statements
7 Employees
The average number of persons employed by the Group during the period, including Executive Directors, analysed by operating division is
shown below. The 2006 numbers have been restated to reflect the operations sold during the period ended 2 April 2007 .
2007 2006
Restated
Number Number
Rail 1,236 1,172 
Plant 818 771 
Accommodation Services 2,578 2,796 
Central 141 191 
Continuing operations 4,773 4,930 
Discontinued operations 260 681 
5,033 5,611
The employment costs of all employees included in continuing operations are shown below. Details of Directors’ remuneration are included
in the audited section of the Directors’ Remuneration Report on pages 30 and 31.
2007 2006
£m £m
Wages and salaries 114.6 127.0 
Social security costs 11.1 12.5
Share-based payments 0.3 0.1
Defined contribution pension scheme costs 3.7 3.5 
Current service cost of defined benefit pension schemes 4.6 4.2 
134.3 147.3
8 Income tax recognised in the Consolidated Income Statement
Deferred tax for the year ended 31 March 2006 has been restated to reflect recognition under IAS 12 – Income Taxes of deferred tax 
assets arising from unused tax losses, sufficient to cover taxable temporary differences associated with pension scheme surpluses. The
restatement reflects the deferred tax charge of £5.3m arising on the actuarial gains and losses, which should be recognised through the
Consolidated Statement of Recognised Income and Expense and not the Consolidated Income Statement.
8.1 Taxation credit for continuing operations
2007 2006
Restated
£m £m
UK corporation tax at the standard rate:
– Current period 0.4 – 
– Adjustment in respect of prior year (0.8) (0.1)
Total current tax credit (0.4) (0.1)
UK deferred tax:
– Current period (2.3) (5.3)
– Adjustment in respect of prior year 0.7 – 
Total deferred tax credit (Note 14) (1.6) (5.3) 
Total income tax credit (2.0) (5.4)
There is no taxation charge in the period attributable to discontinued operations (2006: £0.7m). 48 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
8.2 Factors affecting the tax credit for the period
The tax credit for the period and effective tax rate can be reconciled to the loss for the period in the analysis below.
2007 2006
Restated
£m £m
Loss before taxation (14.1) (59.1)
Tax at the UK standard rate of 30% (4.2) (17.7)
Expenses not deductible for tax purposes 0.2 9.9 
Utilisation of previously unrecognised tax losses (1.2) (1.3)
Tax provision for specific identified risk 0.5 –
Tax losses for which no deferred tax asset was recognised 2.9 3.8
Adjustments to tax charge in respect of prior years (0.2) (0.1)
Total tax credit for period (2.0) (5.4)
9 Loss for the period from discontinued operations
On 1 December 2006  the Prismo Road Markings business was sold to Ennis Paint Inc. and, on 27 February 2007, Jarvis completed the 
sale of its 50 per cent holding in the Accord Jarvis Limited joint venture. The results of both these businesses are treated as discontinued
operations in the period ended 2 April 2007 and, in accordance with IFRS 5, the post-tax results of discontinued operations are disclosed
separately in the Consolidated Income Statement. The results for the year ended 31 March 2006, which also include the European Roads
business disposed of during that year, have been restated for the same presentation.
2007 2006
£m £m
Revenue 26.5 60.9
Cost of sales (24.7) (48.7)
Gross profit 1.8 12.2
Administration expenses (5.4) (9.7)
Operating (loss) / profit before non-recurring costs (3.6) 2.5
Non-recurring costs (0.2) –
Operating (loss) / profit (3.8) 2.5
Net finance costs (0.1) –
Share of post-tax profits from joint ventures disposed of during the period 0.6 0.3
(Loss) / profit before tax (3.3) 2.8
Taxation – (0.7)
(Loss) / profit after tax (3.3) 2.1
Net (loss) / profit on disposals (6.3) 0.3
Post-tax (loss) / profit from discontinued operations (9.6) 2.4
The net loss on disposals in the period to 2 April 2007 relates principally to an £8.1m loss on sale of the Prismo Road Markings business,
details of which are given in Note 31.3, offset by a £0.6m profit on disposal of the Accord Jarvis Limited joint venture and by escrow monies
received from previously discontinued operations. Jarvis plc Annual report and accounts 2007 49
Notes to the Consolidated Financial Statements
10 Loss per share 
2007 2006
£m £m
(Loss) / profit for the period
– Continuing operations (12.1) (53.7)
– Discontinued operations (9.6) 2.4
Total (21.7) (51.3)
Number of shares Number (m) Number (m)
Weighted average number of shares in issue during the period 143.160.6 143.8
Basic and diluted (loss) / earnings per share
– Continuing operations (7.5)p (37.3)p
– Discontinued operations (6.0)p 1.7p
Total (13.5)p (35.6)p
11 Goodwill 
2007 2006
£m £m
Cost
At the start of the period 65.9 68.5
Disposals – (2.5)
Written off (65.9) (0.1)
At end of period – 65.9
Impairment
At start of period 65.2 67.7
Disposals – (2.5)
Written off (65.2) –
At end of the period 7 – 65.2 
Net book value at end of the period – 0.7
Goodwill related to the previously reported, and now discontinued, Roads business segment. 50 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
12 Property, plant and equipment
Short Plant,
leasehold Leasehold vehicles and
properties improvements equipment Total
£m £m £m £m
Cost or valuation
At 1 April 2005 0.2 2.1 51.5 53.8
Additions – – 8.1 8.1
Disposals – (0.2) (1.2) (1.4)
In respect of business disposals – – (1.3) (1.3) 
At 31 March 2006 0.2 1.9 57.1 59.2
Additions – 0.1 4.5 4.6
Disposals (0.2) (0.2) (0.1) (0.5)
In respect of business disposals – – (13.6) (13.6) 
At 2 April 2007 – 1.8 47.9 49.7
Accumulated depreciation
At 1 April 2005 0.1 1.9 25.0 27.0
Charge for the year – 0.2 6.0 6.2 
Disposals – – (0.8) (0.8)
In respect of business disposals – – (1.2) (1.2)
Reclassifications 0.1 (0.6) 0.5 –
At 31 March 2006 0.2 1.5 29.5 31.2
Charge for the period – 0.2 3.8 4.0
Disposals (0.2) – (0.3) (0.5)
In respect of business disposals – – (7.8) (7.8)
At 2 April 2007 – 1.7 25.2 26.9
Net book value
At 2 April 2007 – 0.1 22.7 22.8
At 31 March 2006 – 0.4 27.6 28.0
The net book value of plant, vehicles and equipment includes an amount of £nil (2006: £3.2m) in respect of assets held under finance leases. 
The expected useful lives of specific items of plant have been revised during the year from 3 to 5 years. The impact of this change in
estimate has been to increase the net book value of plant and reduce the loss for the period by £0.7m.
13 Interests in joint ventures and associates
On 27 February 2007 Jarvis completed the sale of its 50 per cent holding in the Accord Jarvis Limited joint venture, the results of which have
been classified as discontinued. As a result, at 2 April 2007 the Group no longer held any interests in joint ventures. During the period the
Group received a dividend of £2.0m from its associate undertaking Chapel Wharf Limited, who also repaid loans totalling £0.3m.
The Group’s share of the net assets and liabilities of joint ventures and associates for the year ended 31 March 2006 is shown below.
Joint
Ventures Associates Total
£m £m £m
Non-current assets 0.1 0.1 2.2 2.3
Current assets 2.4 0.4 2.8
Total assets 2.5 2.6 5.1
Current liabilities 1.5 0.3 1.8
Net assets 1.0 2.3 3.3 Jarvis plc Annual report and accounts 2007 51
Notes to the Consolidated Financial Statements
14 Deferred taxation 
Deferred tax balances for the year ended 31 March 2006 have been restated to reflect recognition under IAS 12 – Income Taxes of deferred
tax assets arising from unused tax losses, sufficient to cover taxable temporary differences associated with pension scheme surpluses.
Deferred tax assets / (liabilities) are attributable as shown below.
Assets Liabilities Net
2007 2006 2007 2006 2007 2006
Restated Restated Restated
£m £m £m £m £m £m
Accelerated capital allowances 0.3 – (0.2) – 0.1 –
Retirement benefit asset – – (10.9) (6.6) (10.9) (6.6)
Taxation losses 9.7 6.6 – – 9.7 6.6
Other short term temporary differences – 0.7 (0.1) – (0.1) 0.7 
0.7 10.0 7.3 (11.2) (6.6) (1.2) 0.7
Movements in net deferred tax assets  / (liabilities) are analysed below.
Accelerated Retirement
capital benefit Taxation
allowances asset losses Other Total
£m £m £m £m £m
At 1 April 2005 – 1.3 (1.3) (0.7) (0.7) 
Credit to Consolidated Income Statement – – 5.3 – (5.3)
Charge to equity – 5.3 – – 5.3
At 31 March 2006 – 6.6 (6.6) (0.7) (0.7)
(Credit) / charge to Consolidated Income Statement (0.1) 0.8 (3.1) 0.8 (1.6)
Charge to equity – 3.5 – – 3.5
At 2 April 2007 (0.1) 10.9 (9.7) 0.1 1.2 
Deferred tax assets relating to tax loss carry-forwards have been recognised for unused tax losses available to cover taxable temporary
differences relating to retirement benefit assets. Deferred tax assets are not recognised for tax loss carry-forwards to the extent that the
realisation of the related tax benefit through future taxable profits is uncertain. 
The Group has not recognised deferred tax assets of £81.3m (2006: £102.7m) in respect of losses amounting to £271.1m (2006: £342.2m) 
that can be carried forward against future taxable income. 52 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
15 Retirement benefits 
15.1 Overview
For the disclosure requirements of IAS19 – Employee Benefits, the Railways Pension Scheme (RPS) and the Streamline Pension Schemes
are the only material defined benefit pension schemes operated by the Group. All other schemes are accounted for as defined contribution.
Railways Pension Scheme 
The scheme is administered in accordance with its trust deed, and is commonly known as a shared cost scheme, under which the employer
and employees are liable for the costs and any surplus or deficit arising under the scheme in the proportion of 60:40 respectively. Eligible
employees participate in three shared cost sections of the RPS, being the Relayfast, Fastline and Jarvis Facilities sections. The latest
triennial actuarial valuation of the RPS was as at 31 December 2004, and was undertaken by professionally qualified and independent
actuaries. At that date the market value of the assets was £270.6m and the average funding level was 102%. 
For the period ended 2 April 2007, employer contributions to the three Jarvis sections of the RPS were 9% of pensionable pay until 
17 June 2006, after which the date they increased to 16.74%, 16.56% and 16.2% for the Relayfast, Fastline and Jarvis Facilities sections
respectively. The employer contributions to the RPS were £2.9m in the period ended 2 April 2007 (2006: £1.4m).
Streamline Pension Schemes
The schemes comprise the Streamline Pension Fund (SPF) and the Streamline Local Government Pension Fund (SLG). The latest triennal
actuarial valuation for the SLG was as at 5 April 2004 and at that date the market value of the assets was £4.7 million and the funding level
was 72%. Following this triennal actuarial valuation the employer contribution rates for the SLG were determined as 20% of pensionable
salaries. This increase took effect from 1 September 2005. In addition, special employer contributions of £85,000 per annum are payable for
ten years; the first payment was made on 31 March 2006. The employer contributions (including the special employer contribution) to the
SLG were £0.3m in the period ended 2 April 2007 (2006: £0.3m).
Whilst a triennial valuation of the SPF was not due until 5 April 2005, a special actuarial valuation was carried out as at 5 April 2004. At that
date the market value of the assets were £22.1m and the funding level was 65%. Following this special triennial actuarial valuation the
employer contribution rates for the SPF were determined as 23.9%,16.5% and 12.9% of pensionable salaries for the 1968, 1984 and 1992
sections respectively. These increases took effect from 1 October 2005. In addition, special employer contributions of £900,000 per annum
are payable for thirteen years; the first payment was made on 31 March 2006. The employer contributions (including the special employer
contribution) to the SPF were £1.0m in the period ended 2 April 2007 (2006: £1.1m).
The total employer contribution to the defined benefit pension schemes for the period ending 31 March 2008 is estimated to be £4.8m.
All Group defined benefit pension schemes are closed to new entrants, other than for new employees who qualify for participation in the
RPS and employees transferring from the public sector, where conditions are specified in the terms of their transfer, who are admitted into
the SLG. Other eligible new employees are offered participation in the Group’s defined contribution schemes.
Contributions made to defined contribution arrangements for other eligible Group employees are based on a pre-determined percentage of
individual salaries. Contributions by the Group into defined contribution schemes and non-material defined benefit schemes are disclosed in
Note 7.
15.2 IAS 19 disclosures
Assets and liabilities for IAS 19 accounting purposes have been estimated by independent qualified actuaries, updating the most recent 
triennial actuarial valuations. The weighted averages of the principal assumptions used are shown below.
2007 2006
% %
Discount rate for scheme liabilities 5.20 4.90
Retail price inflation 3.10 2.90
Rate of increase in salaries* 3.55 3.35
Rate of increase to pensions in payment 3.10 2.90
Rate of increase to deferred pensions 3.10 2.90
Expected return on scheme assets** 6.93 6.50
*Plus promotional increases of 0.75 per cent per annum.
**The expected return on scheme assets is based on the market expectations at the beginning of the period for returns over the life of the benefit obligation. Jarvis plc Annual report and accounts 2007 53
Notes to the Consolidated Financial Statements
15.2 IAS 19 disclosures (continued)
For both the RPS and Streamline Schemes, the mortality assumptions used for IAS 19 calculation purposes are on the same basis as that
used by the trustees and scheme actuary at the last triennial valuation. The mortality tables adopted by the scheme actuary for the RPS and
Streamline Schemes are based on the 1992 series CMI tables, modified for scheme specific experiences.
The life expectancies implied by the mortality assumptions used for the period ended 2 April 2007 and year ended 31 March 2006 are shown
below.
Male Female
Years Years
Railways Pension Scheme
Life expectancy – for an active deferred member reaching age 65 19.0 21.519.0 21.5
Life expectancy – for a 65 year old pensioner 17.8 20.217.8 20.2
Streamline Pension Schemes
Life expectancy – for an active deferred member reaching age 65 20.2 23.220.2 23.2
Life expectancy – for a 65 year old pensioner 19.4 22.319.4 22.3
Railways Streamline 
Pension Scheme Pension Schemes Total 
Expected rates Expected long Share of Share of  Share of
of return and analysis term rate Market total scheme Market total scheme Market total scheme
of scheme assets of return value assets value assets value assets 
as at 2 April 2007 % £m % £m % £m %
Equity 7.70 130.0 60.9 16.1 49.9 146.1 59.4
7.25 Property 6.50 17.8 8.3 – – 17.8 7.2
6.05 Bonds (including gilts) 5.05 28.3 13.2 15.9 49.3 44.2 17.9
4.6 Hedge funds 7.34 19.5 9.1 – – 19.5 7.9
6. Cash 5.25 18.3 8.5 0.3 0.8 18.6 7.6
Fair value of scheme assets 6.93 213.9 100.0 32.3 100.0 246.2 100.0
As at 31 March 2006
Equity 7.25 128.6 64.6 16.1 50.2 144.7 62.6
Property 6.05 16.7 8.4 – – 16.7 7.2
Bonds (including gilts) 4.60 27.8 14.0 15.4 48.0 43.2 18.7
Hedge funds 6.84 16.4 8.2 – – 16.4 7.1
Cash 4.50 9.5 4.8 0.6 1.8 10.1 4.4
Fair value of scheme assets 6.50 199.0 100.0 32.1 100.0 231.1 100.0
The expected long term rate of return for equity, property and bonds is based on the yield to redemption on 20 year fixed interest gilts of
4.60% (2006: 4.15%) plus an adjustment to reflect market expectations of the equity, property and bond asset classes respectively. The
expected long term rate of return for hedge funds is based on the London LIBOR plus an adjustment of 2% (2006: 2%) to reflect market
expectations. Cash comprises mainly of cash holdings and the expected long term rate of return reflects the current short term returns 
on such deposits.
Railways Streamline Railways Streamline
Pension Pension 2007 Pension Pension 2006
Amounts recognised in the Scheme Schemes Total Scheme Schemes Total 
Consolidated Income Statement £m £m £m £m £m £m
Current service cost (4.2) (0.4) (4.6) (3.7) (0.5) (4.2)
Curtailment gain – 1.1 1.1 –––
Total charged to operating profit (4.2) 0.7 (3.5) (3.7) (0.5) (4.2)
Interest cost (8.6) (2.4) (11.0) (8.7) (2.6) (11.3)
Expected return on pension assets 12.6 1.5 14.1 11.4 1.6 13.0
Total amount credited / (charged) to finance income 4.0 (0.9) 3.1 2.7 (1.0) 1.7
Total charged to the Consolidated
Income Statement (0.2) (0.2) (0.4) (1.0) (1.5) (2.5) 54 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
15.2 IAS 19 disclosures (continued)
Railways Streamline Railways Streamline
Amounts recognised in Pension Pension 2007 Pension Pension 2006
the Consolidated Statement Scheme Schemes Total Scheme Schemes Total 
of Recognised Income and Expense £m £m £m £m £m £m
Actual return less expected return 
on pension scheme assets 8.4 (1.3) 7.1 28.6 1.9 30.5
Gain / (loss) arising from changes 
in the assumptions underlying the present
value of scheme liabilities 3.3 1.0 4.3 (11.4) 0.5 (10.9)
Net actuarial gain / (loss) in the Consolidated 
Statement of Recognised Income and Expense 11.7 (0.3) 11.4 17.2 2.4 19.6 
The actual return on scheme assets for the period ended 2 April 2007 was £21.2m (2006: £43.5m).
Railways Streamline Railways Streamline
Pension Pension 2007 Pension Pension 2006
Scheme Schemes Total Scheme Schemes Total 
Balance sheet analysis £m £m £m £m £m £m
Present value of funded defined 
benefit obligations brought forward (177.0) (50.0) (227.0) (162.3) (48.7) (211.0)
Current service cost (4.2) (0.4) (4.6) (3.7) (0.5) (4.2)
Curtailment gain – 1.1 1.1 –––
Contributions paid – (0.1) (0.1) – (0.1) (0.1)
Interest cost (8.6) (2.4) (11.0) (8.7) (2.6) (11.3)
Benefits paid 9.0 1.5 10.5 9.1 1.4 10.5
Net actuarial gain / (loss) recognised 
in the Consolidated Statement of 
Recognised Income and Expense 3.3 1.0 4.3 (11.4) 0.5 (10.9)
Present value of funded defined 
benefit obligations carried forward (177.5) (49.3) (226.8) (177.0) (50.0) (227.0)
Pension assets brought forward 199.0 32.1 231.1 166.7 28.5 195.2 
Expected return on scheme assets 12.6 1.5 14.1 11.4 1.6 13.0 
Benefits paid (9.0) (1.4) (10.4) (9.1) (1.4) (10.5)
Actuarial gains 8.4 (1.3) 7.1 28.6 1.9 30.5 
Contributions paid by employer 2.9 1.3 4.2 1.4 1.4 2.8  
Contributions paid by employees – 0.1 0.1 – 0.1 0.1
Pension assets carried forward 213.9 32.3 246.2 199.0 32.1 231.1
Net defined benefit obligation 36.4 (17.0) 19.4 22.0 (17.9) 4.1
Railways Streamline Railways Streamline
Pension Pension 2007 Pension Pension 2006 
Pension surplus / (deficit) recognised Scheme Schemes Total Scheme Schemes Total
as a non-current asset / (liability) £m £m £m £m £m £m
Fastline 12.6 – 12.6 7.3 – 7.3
Relayfast 5.5 – 5.5 2.7 – 2.7
Jarvis Facilities 18.3 – 18.3 12.0 – 12.0
Streamline LG Fund – (3.3) (3.3) – (3.1) (3.1)
Streamline Pension Fund – (13.7) (13.7) – (14.8) (14.8)
Net defined benefit pension obligation 36.4 (17.0) 19.4 22.0 17.9 4.1 Jarvis plc Annual report and accounts 2007 55
Notes to the Consolidated Financial Statements
15.2 IAS 19 disclosures (continued)
History of experience gains and losses – Railways Pension Scheme 2007 2006 2005
Present value of defined benefit obligations (£m) (177.5) (177.0) (162.3)
Fair value of scheme assets (£m) 213.9 199.0 166.7
Surplus in scheme (£m) 36.4 22.0 4.4
Experience gains on scheme assets (£m) 8.4 28.6 17.7
Percentage of scheme assets (%) 3.9 14.4 10.6
Total amount recognised in the Consolidated Statement 
of Recognised Income and Expense (£m) 11.7 17.2 11.1
Percentage of the present value of scheme liabilities (%) 6.6 9.7 6.8
History of experience gains and losses – Streamline Pension Schemes 2007 2006 2005
Present value of defined benefit obligations (£m) (49.3) (50.0) (48.7)
Fair value of scheme assets (£m) 32.3 32.1 28.5
Deficit in scheme (£m) (17.0) (17.9) (20.2)
Experience (losses) / gains on scheme assets (£m) (1.3) 1.9 0.7
Percentage of scheme assets (%) (3.9) 5.9 2.5
Experience gains on scheme liabilities (£m) – – 1.0
Percentage of the present value scheme liabilities (%) – – 2.1
Total amount  recognised in the Consolidated Statement 
of Recognised Income and Expense (£m) (0.3) 2.4 (3.2)
Percentage of the present value of scheme liabilities (%) (0.6) 4.8 (6.6)
The cumulative amount of actuarial gains and losses since 1 April 2004 recognised in the Consolidated Statement of Recognised Income
and Expense is £38.9m (2006: £27.5m). In accordance with IFRS, the Group has taken exemption from disclosing experience gains and losses
for the years prior to 31 March 2005.
16 Inventories
2007 2006
£m £m
Raw materials and consumables 0.2 2.1 
Work in progress 1.9 0.9 
Finished goods and goods for resale 1.3 4.0 
3.4 7.0 
The above balances include an impairment provision of £0.3m (2006: £1.4m). 56 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
17 Trade and other receivables
2007 2006
£m £m
Trade receivables 23.5 30.8 
Amounts due from customers on contracts 42.5 49.7 
Amounts due from joint venture and associate undertakings – 0.6
Other receivables 14.0 16.1 
Prepayments and accrued income 7.0 7.6 
87.0 104.8 
Trade receivables include a bad debt provision of £1.9m (2006: £8.9m).
Other receivables include £3.4m (2006: £9.0m) relating to cash balances held in separate trust accounts. On 29 January 2005 Jarvis plc and
certain other subsidiaries entered into agreements with other relevant parties in respect of 14 construction contracts (being those contracts
not then past practical completion or that had material future cash outflows associated with them), to release the Company from Parent
Company guarantees given under the original contracts and to limit the Group’s liability to additional costs required to complete the
contracts. These agreements specified that the sums required to complete the contracts be placed into two trusts for each contract. 
The trusts are in the name of Jarvis Construction UK Limited but the funds standing to the credit of them are available only for the purposes
specified by each trust and are directly related to funding construction liabilities. The funds are not available to Jarvis plc and Jarvis
Construction UK Limited except for these purposes. The cash in each trust is only made available at the point when payments are made 
in accordance with the purposes of the trust. For these reasons the cash in the trusts is recognised within other receivables.
18 Construction contracts 
Contracts in progress at the balance sheet date are analysed below.
2007 2006
£m £m
Due from customers for contract work, included in trade and other receivables 3.0 7.0 
Due to customers for contract work, included in trade and other payables (0.1) (0.3)
2.9 6.7
The aggregate amount of costs incurred plus recognised profits (less recognised losses) for all contracts in progress at the balance sheet
date was £8.3m (2006:£33.8m).
19 Assets and liabilities held for sale
The Group had no assets or liabilities held for sale at 2 April 2007. The assets and liabilities of the Group classified as held for sale at 
31 March 2006 relate to the FM Ireland business and are detailed below. 
£m
Assets held for sale
Trade and other receivables 0.2
Cash and cash equivalents 0.2
0.4
Liabilities held for sale
Trade and other payables (0.3)
(0.3)
Net assets held for sale 0.1 Jarvis plc Annual report and accounts 2007 57
Notes to the Consolidated Financial Statements
20 Borrowings
20.1 Summary of borrowings
2007 2006
Fixed Floating Total Fixed Floating Total
£m £m £m £m £m £m
Current
Bank loans and loan notes – 18.3 18.3 1.8 25.6 27.4
Obligations under finance leases ––– 0.9 – 0.9
– 18.3 18.3 2.7 25.6 28.3
Non-current
Bank loans and loan notes – 32.9 32.9 0.9 0.8 1.7
Obligations under finance leases ––– 1.9 – 1.9
– 32.9 32.9 2.8 0.8 3.6
Total borrowings – 51.2 51.2 5.5 26.4 31.9
All borrowings are denominated in sterling.
20.2 Maturity profile of borrowings 
Bank loans Bank loans
and loan 2007 and loan 2006  
notes Total Leases notes Total
£m £m £m £m £m
Not later than one year 0.9 18.3 18.3 0.9 27.4 28.3
Between one and two years 3.9 3.9 0.7 1.7 2.4
Between two and five years 29.0 29.0 1.2 – 1.2
51.2 51.2 2.8 29.1 31.9
20.3 Finance leases
The Group had no outstanding finance lease commitments at 2 April 2007. Future minimum lease payments under finance leases together
with the net present value for 31 March 2006 are shown in the table below. The non-current finance lease commitments held by the Group 
at 31 March 2006 principally relate to the Prismo Road Markings business, sold during the period ended 2 April 2007.
Present 
Minimum value of
payments payments
£m £m
Less than one year 1.0 0.9 1.0 0.9
Between one and five years 0.8 0.7 2.3 1.9
Total obligations under finance leases 3.3 2.8 3.3 2.8 
Less future finance charges (0.5) – (0.5) –
Present value of finance liabilities 2.8 2.8 2.8 2.8 58 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
20.4 Borrowing facilities
The Group completed a refinancing of its banking facilities on 27 July 2006 with a new three-year committed facility of £67m arranged by
Burdale Financial Limited, the secured asset-based lending subsidiary of the Bank of Ireland, secured by way of a fixed and floating charge
on the Group’s assets, in particular its plant, machinery and receivables under its rail renewal and plant hire contracts.
The new facilities are split into a senior tranche of up to £55m and a subordinated facility of up to £12m. The margin on the senior facility
is up to 3.75 per cent over LIBOR while the margin on the subordinated facility is 8 per cent over LIBOR (rising to 10 per cent in certain
circumstances). The senior facility may incur a further two per cent margin (and the subordinated facility may incur a further four per cent
margin) if there is a continuing event of default (or a continuing event of subordinated default). The senior facility comprises both term and
revolving facilities. £5.4m of the revolving portion is subject to monthly reductions from January 2007 onwards. The subordinated facility 
is subject to repayments of £2m in January 2008 and a further £2m in January 2009, subject to cash flow and headroom tests. Voluntary
repayment of the subordinated facility is not permitted for one year from signing. Repayment of the subordinated facility is subject to cash
flow and headroom tests and the facilities are subject to an EBITDA financial covenant.
At 2 April 2007 the Group had available £15.8m (2006: £8.0m) of undrawn borrowing facilities.
20.5 Effective interest rates
The effective interest rates on the Group’s interest bearing borrowings at the balance sheet date are shown below.
2007 2006
% %
Loan notes and bank loans 10.7 14.4
Finance leases – 5.9
21 Financial instruments
There were no derivative financial instruments outstanding at the balance sheet date.
Non-derivative financial instruments consist of cash at bank, short term deposits, trade and other receivables, bank overdrafts, borrowings
and trade and other payables. The fair value of these approximate the carrying value in the balance sheet. The fair value of the non-current
borrowings is their net present value computed at the market rate that would arise if the commitment had been entered into at the balance
sheet date. The fair value of all other non-derivative financial instruments approximate their carrying values because of the short term
maturity of these instruments.
22 Trade and other payables 
2007 2006
£m £m
Trade payables 33.8 39.0 
Other payables 4.9 6.7 
Accruals and deferred income 56.2 74.1 
Advance payments on contracts 1.3 4.0 
Other taxation and social security 17.6 15.5 
113.8 139.3  Jarvis plc Annual report and accounts 2007 59
Notes to the Consolidated Financial Statements
23 Provisions 
Onerous leases Restructuring Other Total 
£m £m £m £m
At 1 April 2006 1.0 5.6 8.1 14.7 
Provisions utilised during the period (0.4) (3.6) (5.4) (9.4)
New provisions charged to the Consolidated 
Income Statement during the period 0.4 1.6 – 2.0 
At 2 April 2007 1.0 3.6 2.7 7.3
Disclosed within:
Current liabilities 0.6 3.6 2.2 6.4
Non-current liabilities 0.4 – 0.5 0.9
1.0 3.6 2.7 7.3
Provisions represent the best estimate of obligations at the balance sheet date. The provision for onerous leases has been calculated at the
net present value of rents payable less rents receivable (having taken account of potential void periods and lease incentives) up to the end of
the lease. Allowance has been made for empty rates and agents’ fees.
The restructuring provision relates to the costs associated with the ongoing operational restructuring. The other provisions relate to 
liabilities in respect of contracts and third party claims and represent the net present value of the expected cash outflow in relation to 
these obligations.
24 Share capital 
24.1 Authorised
2007 2007 2006 2006
Number Value Number Value
(m) £m (m) £m
Ordinary Shares of 5p each 340.0 17.0 191.5 9.6 
Deferred Shares of 1p each – – 717.5 7.2
17.0 16.8 
During the period the Group consolidated its 717,500,000 Deferred Shares of 1p into 143,500,000 Ordinary Shares of 5p. The Group also
increased its authorised share capital by £250,000 as a result of the issue of 5,000,000 Ordinary Shares of 5p each.
24.2 Allotted, called up and fully paid
Ordinary Shares
of  5p each
Number Value
(m) £m
At 1 April 2006 152.1 7.6
Issue of Shares to existing warrant holders 4.6 0.2
Allotted in connection with warrants exercised 9.2 0.5
Placing and Open Offer 38.5 1.9
At 2 April 2007 204.4 10.2
During the period there was a placing of 4,602,460 Ordinary Shares, 9,165,555 warrants were exercised and 38,485,241 Ordinary Shares
were allotted under the Placing and Open Offer completed on 2 April 2007. 60 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
25 Equity
Attributable to equity shareholders of the Group
Capital Accu-
Share Share Revaluation redemption Other Translation mulated Total
capital premium reserve reserve reserve reserve losses equity
£m £m £m £m £m £m £m £m
Balance at 1 April 2005 7.2 142.3 3.0 – 89.7 0.4 (656.9) (414.3)
Adoption of IAS 32 and IAS 39 –––––– 1.5 1.5
Debt for Equity Exchange 0.4   377.6   ––––– 378.0
Placing and Open Offer (net of expenses) 7.1 36.4––––– 43.5
Additional shares issued in connection 
with exercise of warrants 0.1 0.3––––– 0.4
Share cancellation (7.2) – –   7.2 –   – – –
Disposal of revalued properties – – (3.0)   –   –   – 3.0  –
Currency translation movements in the year ––––   –   (0.1)  – (0.1)
Currency translation adjustments recognised 
on disposal of European Roads ––––– (0.3) – (0.3)
Actuarial gains on defined benefit pension schemes – –   –––– 19.6 19.6 
Share options expensed through the income statement–––––– 0.1 0.1
Loss for the year –   –   –   –   –   – (56.6) (56.6)
Balance at 31 March 2006 7.6 556.6 – 7.2 89.7 –(689.3)   (28.2)
Restatement for tax in respect of items 
taken directly to equity* (5.3) (5.3)
Restatement of loss for the year* 5.3 5.3
Restated balance at 31 March 2006 7.6 556.6 – 7.2 89.7 – (689.3) (28.2)
Placing and Open Offer (net of expenses) 1.9 19.8 – –   –   –   –   21.7  
Issue of shares to existing warrant holders 0.5 2.2––––– 2.7
Additional shares issued in connection 
with exercise of warrants 0.2 2.8   –   –   –   – – 3.0
Actuarial gains on defined benefit pension schemes –   –   –   –   –   – 11.4   11.4 
Tax in respect of items taken directly to equity –––––– (3.5) (3.5)
Movements relating to share-based payments –––––– 0.3 0.3
Loss for the period –   –   –   –   –   –  (21.7)   (21.7)   
Balance at 2 April 2007 10.2 581.4 – 7.2 89.7   – (702.8) (14.3)
*Restatement to reflect recognition under IAS 12 – Income Taxes of deferred tax assets arising from unused tax losses. Further details are given in Notes 8 and 14.
Share capital and share premium
38,485,241 Ordinary Shares of 5p were allotted under the Placing and Open Offer at a price of 65p each, raising funds of £25.0m. Net
proceeds, after deduction of directly attributable share issue costs of £ 3.3m, were £21.7m, represented by an increase to share capital 
of £1.9m and an increase to share premium of £19.8m.
Capital redemption reserve
This reserve arose from the Placing and Open Offer completed on 29 September 2005, when £7.2m of Ordinary Shares were cancelled.
Other reserve
This reserve arose on the acquisition of Streamline Holdings plc in the year ending 31 March 1998. The company took advantage of the 
relief under section 131, Companies Act 1985, from the requirements to establish a share premium account in respect of shares issued 
to the shareholders of Streamline Holdings plc pursuant to the acquisition of that Company. This reserve is not available for distribution 
to shareholders. Jarvis plc Annual report and accounts 2007 61
Notes to the Consolidated Financial Statements
26 Share-based payments
In the period ended 2 April 2007 the amount charged to the Consolidated Income Statement in relation to share-based payments totalled 
£0.3m (2006: £0.1m). Details of the Jarvis share-based payment schemes are given below.
The Executive Scheme
The rules of the Executive Share Option Scheme (the Executive Scheme) permit the Directors, during specified periods, to offer employees
(including Executive Directors) options over shares in the Company, subject to limitations. These options will normally be exercisable in
whole or in part during the period starting three years from the date of grant and ending ten years after such date.
All of the options granted under the terms of the Executive Scheme were granted before 7 November 2002, and the Group has therefore
applied the transitional provisions of IFRS 1 and IFRS 2. The options outstanding and the movements during the period are shown below.
Subscription
price 2007 2006
Exercisable per share Number of Number of 
Grant date from Pence shares shares 
1 October 1996 1 October 1999 473.00 – 4,510
6 October 1998 6 October 2001 487.00 10,000 10,000
18 January 1999 18 January 2002 587.00 20,000 20,000
2 August 1999 2 August 2002 271.00 33,000 33,000
28 July 2000 28 July 2003 199.50 34,500 34,500
24 December 2001 24 December 2004 530.00 28,300 28,300
11 July 2002 11 July 2005 290.00 8,000 8,000
133,800 138,310
2007 2006
Weighted Weighted
average average 
price price 
Number Pence Number Pence
Outstanding at start of the period 138,310 375.16 1,153,514 353.10
Surrendered and cancelled (4,510) 473.00 (1,015,204) 350.10
Outstanding at end of the period 133,800 371.86 138,310 375.16
The Management Incentive Plan
The rules of the Management Incentive Plan (MIP) permit Directors and invited senior employees to be granted options over shares in 
the Company, which can be exercised subject to certain performance conditions. Options are granted with a fixed exercise price equal to
the average market price of the shares under option, over the 17 days preceding the grant date. The contractual life of the option is 3 years
commencing on the date of grant and is subject to continued employment, but may be modified in accordance with the employee’s
employment contract.
The Company first made the grant on 30 November 2005 and the authority to grant further options under the plan has now lapsed. The
options are exercisable in one third tranches dependent upon increases in the Company's share price of 25%, 50%, and 75% from the 
price at grant date. The options outstanding and movements during the period are shown below.
2007 2006
Weighted Weighted
average average 
price price 
Number Pence Number Pence
Outstanding at start of the period 5,355,000 86.73 ––
Granted during the period 1,888,000 48.59 5,355,500 86.73
Surrendered and cancelled (2,672,000) 85.39 ––
Outstanding at end of the period 4,571,000 71.76 5,355,000 86.73 62 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
26 Share-based payments (continued)
The Savings Related Share Option Scheme
The rules of Savings Related Share Option Scheme (the SAYE scheme) permit the Directors, during specified periods, to invite eligible
Directors and employees to apply for options over shares in the Company subject to limitations. Options may only be granted to employees
who enter Inland Revenue approved saving contracts under which monthly savings are made over a period of three to five years. Employees
normally have a period of six months after completion of the savings contributions to exercise the SAYE options. The options outstanding
and movements during the period are shown below.
2007 2006
Weighted Weighted
average average 
price price
Number Pence Number Pence
Outstanding at start of the period –– ––
Granted during the period 3,200,213 70.00 ––
Surrendered and cancelled (312,369) 70.00 ––
Outstanding at end of the period 2,887,844 70.00 ––
The 2003 Share Option Plan
The rules of the 2003 Share Option Plan permit Directors and invited senior employees to be granted options to acquire shares in the
Company, which can be exercised subject to certain performance conditions. Options are granted with a fixed exercise price equal to the
average market price of the shares under option, over the 20 days preceding the grant date. The contractual life of the option is 3 years
commencing on the date of grant.
The options are exercisable in one third tranches dependent upon increases in the Company’s share price of 20%, 40% and 60% from the
price at grant date. The options outstanding and movements during the period are shown below.
2007 2006
Weighted Weighted
average average 
price price
Number Pence Number Pence
Outstanding at start of the period –– ––
Granted during the period 2,798,000 54.50 ––
Outstanding at end of the period 2,798,000 54.50 ––
Options for the schemes within the scope of IFRS 2  – Share-based Payment are valued using the Black-Scholes-Merton option pricing
model. The principal assumptions and key data used in the calculations are shown below. The recognition and measurement principles in
IFRS 2 have not been applied to the Executive Scheme.
Share
price at Shares Expected Option Risk free
grant date under volatility life interest rate
Grant date Pence option % Y ears % Tranche 1 Tranche 2 Tranche 3
The Management Incentive Plan
30 November 2005 86.73 5,355,000 21.3 3 4.0 17.00 14.00 9.00
8 August 2006 56.26 550,000 20.5 3 5.0 11.00 9.00 6.00
4 October 2006 45.44 1,338,000 20.5 3 5.0 9.00 7.00 4.00
The Savings Related 
Share Option Scheme
4 April 2006 70.00 3,200,213 20.5 3 5.0 14.00
The 2003 Share Option Plan
4 October 2006 54.50 2,798,000 20.5 3 5.0 11.00 9.00 6.00
The expected volatility used in the valuation model is based on historical volatility over the last three years of a peer group.
Fair value per option
Pence Jarvis plc Annual report and accounts 2007 63
Notes to the Consolidated Financial Statements
27 Commitments 
27.1 Capital commitments
The Group had no capital commitments at 2 April 2007 (2006: £ nil).  
27.2 Operating leases
The Group has entered into commercial leases on certain properties, motor vehicles and items of plant and equipment. The total of future
minimum lease payments payable under non-cancellable operating leases is shown in the table below.
Vehicles, Vehicles,
plant and 2007 plant and 2006
equipment Property Total equipment Property Total
£m £m £m £m £m £m
Within one year 9.8 3.5 13.3 13.5 2.9 16.4
More than one year but within five years 13.5 10.3 23.8 15.7 9.0 24.7
After five years 1.8 16.3 18.1 0.8 17.7 18.5
25.1 30.1 55.2 30.0 29.6 59.6
Operating lease charges recognised in the Consolidated Income Statement are shown in Note 4.
28 Contingent liabilities 
The Company has guaranteed performance bonds and given guarantees in respect of contracts entered into by subsidiary undertakings 
in the normal course of business.
The Group has provided guarantees to certain local authorities in connection with the potential rebate of unitary charges paid by those
authorities to the relevant wholly-owned Jarvis special purpose company, should this become necessary as a result of underperformance 
in connection with agreed service standards.
The Group completed a refinancing of its banking facilities on 27 July 2006 with a new three-year committed facility of £67m arranged by
Burdale Financial Limited, the secured asset-based lending subsidiary of the Bank of Ireland, secured by way of a fixed and floating charge
on the Group’s assets, in particular its plant, machinery and receivables under its rail renewal and plant hire contracts. The facilities are
subject to certain financial covenants and events of default. Breaches of financial covenants or events of default can be waived or consented
to by the lenders but such waivers or consents may require the payment of fees and costs to the lenders.
In respect of the accident at Potters Bar, the Directors consider that the amount recognised in the Consolidated Financial Statements
adequately covers the Group’s exposure to claims from the accident. The Directors believe that all those individuals affected have lodged
claims although further claims are not yet time barred. The Directors are unable to quantify the eventual total amount of such claims against
the Group in respect of this accident but have received confirmation that the insurance cover in place adequately covers the Group’s
exposure to such claims. 
29 Post balance sheet event
By special resolution on 30 March 2007, confirmed by the court on 2 May 2007, the share premium account was reduced by £520.7m,
eliminating the accumulated deficit on the Company’s profit and loss account and creating a special reserve of £3.1m. The effect this has on
the Group and Company’s reserves is shown in Note 29.1 below. The special reserve may be transferred to the profit and loss account of the
Company to write off accrued losses, but only after taking into account all available realised profits.
29.1 Proforma equity statement
Group Company
As at As at
2 April 2 April
2007 Proforma 2007 Proforma
£m £m £m £m
Share capital 10.2 10.2 10.2 10.2
Share premium 581.4 60.7 581.4 60.7
Capital redemption reserve 7.2 7.2 7.2 7.2
Other reserve 89.7 89.7 89.6 89.6
Special reserve – 3.1 – 3.1
Accumulated losses (702.8) (185.2) (517.6) –
Equity shareholders’ deficit (14.3) (14.3) 170.8 170.8 64 Jarvis plc Annual report and accounts 2007
Notes to the Consolidated Financial Statements
30 Related party transaction
30.1 Joint ventures and associates
During the period, the Group has provided services to, and received management fees from, the Accord Jarvis Limited joint venture and 
the Chapel Wharf Limited associate undertaking, totalling £0.3m (2006: £0.4m) and £0.1m (2006: £nil) respectively. The Group’s interest 
in Accord Jarvis Limited was sold during the period and no amounts were due to, or from, associate or joint venture undertakings at 
2 April 2007.
30.2 Key management personnel
Key management personnel comprise the Executive and Non-Executive Directors, as identified in the Directors’ Remuneration Report on
pages 27 to 31, along with the Executive Team. The remuneration of these key personnel is detailed below.
2007 2006
£m £m
Salaries and short-term benefits 2.9 3.4
Post employment benefits 0.3 0.2
Termination benefits 0.1 –
3.3 3.6
31 Notes to the Consolidated Cash Flow Statement
31.1 Cash generated from operations
2007 2006
(Loss) / profit from operations £m £m
Operating (loss) / profit from continuing operations (9.5) 8.7
Operating (loss) / profit from discontinued operations* (Note 9) (10.1) (2.8)
(19.6) 11.5
Adjustments for non-cash movements
Depreciation of property, plant and equipment 
– Continuing operations 3.2 4.5
– Discontinued operations 0.8 1.7
Non-cash pension (income) / costs (0.7) 1.4
Restructuring and redundancy costs 4.9 3.1
Losses / (gains) on disposal of businesses 6.9 (0.3)
Loss on disposal of property, plant and equipment – 0.2
15.1 10.6
Movement in working capital
Decrease in inventories 3.6 0.7
Decrease in receivables 12.3 23.6
Decrease in payables (29.3) (74.8)
Decrease in provisions (3.1) (4.0)
(16.5) (54.5)
Cash flows from operations (21.0) (32.4)
*Includes a net loss on disposals of £6.3m (2006: net profit of £0.3m).
31.2 Analysis of movement in net debt
2007 2006
£m £m
Opening net debt (22.2) (303.8)
Net increase in cash and cash equivalents 17.9 1.0
Debt for Equity Exchange – 280.1
New borrowings (51.2) (24.0)
Repayment of loans 29.1 21.9
Finance lease principal repayments 0.5 1.2
Businesses sold – finance leases at date of disposal 2.3 1.4
(23.6) (22.2) Jarvis plc Annual report and accounts 2007 65
Notes to the Consolidated Financial Statements
31.3 Disposals
On 1 December 2006 the Group sold its Prismo Road Markings business for a cash consideration of £4.2m. The carrying values of the
assets and liabilities sold, and the loss on disposal, are detailed below. 
£m
Net assets disposed of:
Property, plant and equipment 5.8
Inventories 3.3
Trade and other receivables 12.2
Trade and other payables (6.7)
Obligations under finance leases (2.3)
12.3
Cash consideration received, net of disposal costs paid (4.2)
Loss on disposal 8.1
On 27 February 2007 the Group sold its 50 per cent holding in the Accord Jarvis Limited joint venture for a cash consideration of £0.9m and a
profit on disposal of £0.6m.
The sale of the Prismo Road Markings business and the Accord Jarvis Limited joint venture did not involve the transfer of any cash balances.
The net cash flows attributable to discontinued operations during the period are shown below.
2007 2006
£m £m
Net cash flow from operating activities 0.4 (1.5)
Net cash flow from investing activities 1.1 (0.3)
Net cash flow from financing activities – –
32 Principal subsidiary undertakings and associates at 2 April 2007
The subsidiaries and associates which, in the opinion of the Directors, principally affect Group trading results and net assets are listed
below.
32.1 Principal subsidiary undertakings
Company Nature of business
Fastline Limited* Rail and other plant hire business
Jarvis Rail Limited Rail infrastructure services
Jarvis Accommodation Services Limited Facilities Management 
Jarvis Construction (UK) Limited Construction management
On Track Plant Limited Rail plant hire
Jarvis Property Company Limited Property investment, dealing and development
Jarvis Estates Limited Property investment
Somerford Equipment Limited* Specialist vehicle delivery
Herefordshire Jarvis Services Limited* Facilities Management including highways and other support services
Jarvis Plant Hire Limited* Plant hire
*Indirectly owned by the Company.
All principal subsidiary undertakings are incorporated in England and Wales and are wholly owned, except for Herefordshire Jarvis Services
Limited, in which Jarvis has an 80 per cent shareholding.
32.2 Associate undertakings
Percentage
Company owned Nature of business
Chapel Wharf Limited 34.4% Regeneration and development of Chapel Wharf, Salford, Greater Manchester
Chapel Wharf Limited is incorporated in England and Wales. 66 Jarvis plc Annual report and accounts 2007
Company Balance Sheet
At 2 April 2007
2007 2006
Notes £m £m
Fixed assets
Tangible assets 5 – 0.2 
Investments in subsidiary undertakings 6 74.3 84.0 
74.3 84.2 
Current assets
Debtors 7 93.0 128.2
Cash at bank and in hand 23.8 0.5
116.8 128.7 
Creditors: amounts falling due within one year 8 (17.3) (44.0)
Net current assets 99.5 84.7
Total assets less current liabilities 173.8 168.9
Provisions for liabilities and charges 9 (3.0) (6.6)
Net assets 170.8 162.3
Capital and reserves
Share capital 10 10.2 7.6 
Share premium 10 581.4 556.6 
Capital redemption reserve 10 7.2 7.2
Other reserve 10 89.6 89.6 
Profit and loss account 10 (517.6) (498.7)
Equity shareholders’ funds 170.8 162.3
The Financial Statements were approved by the Board on 11 June 2007 and were signed on its behalf by:
R Entwistle Chief Executive
J O’Kane Group Finance Director Jarvis plc Annual report and accounts 2007 67
Notes to the Company Balance Sheet
1 Principal accounting policies
(a) Basis of accounting
The Company’s Financial Statements have been prepared under the historical cost convention and in accordance with applicable UK
accounting standards and the Companies Act 1985. The Company has not presented its own profit and loss account, in accordance with the
exceptions allowed by Section 230(4) of the Companies Act 1985.
(b) Investments
Investments are stated at cost less provision for any impairment in value.
(c) Provisions 
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and when it is
probable that an outflow of resources will be required to settle the obligation. Provisions are measured at the Directors’ best estimate 
of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value.
2 Auditors’ remuneration
The auditors’ remuneration for audit services to the Parent Company for the period ended 2 April 2007 was £0.1m (2006: £0.1m).
3 Payroll costs and employee numbers
2007 2006
£m £m
Wages and salaries 6.8 8.5
Social security costs 0.8 1.1
Pension costs 0.5 0.5
8.1 10.1
The average number of employees in the period, including Executive Directors, was 141 (2006: 191). 
Detailed disclosures of Directors’ individual remuneration, share options and other benefits are given in the audited section of the Directors’ 
Remuneration Report on pages 30 and  31.
4 Dividends
No dividends were paid during the period (2006: nil).
5 Tangible assets 
Fixtures, 
Leasehold fittings and 
improvements equipment Total
£m £m £m
Cost
At 1 April 2006 0.1 0.9 1.0 
At 2 April 2007 0.1 0.9 1.0
Depreciation
At 1 April 2006 – 0.8 0.8 
Charge for the period – 0.1 0.1
Impairment 0.1 – 0.1 
At 2 April 2007 0.1 0.9 1.0
Net book value
At 2 April 2007 –– – 
At 31 March 2006 0.1 0.1 0.2
6 Fixed asset investments in subsidiary undertakings
2007
£m
At 1 April 2006 84.0
Impairment provision (9.7)
At 2 April  2007 74.3
Investments in subsidiary undertakings primarily relate to the subsidiary undertakings disclosed in Note 32.1 to the Consolidated 
Financial Statements.  68 Jarvis plc Annual report and accounts 2007
Notes to the Company Balance Sheet
7 Debtors
2007 2006
£m £m
Amounts owed by Group undertakings 86.7 120.5 
Other debtors 6.1 6.8 
Prepayments and accrued income 0.2 0.4 
Corporation tax receivable – 0.5
93.0 128.2 
8 Creditors: amounts falling due within one year
2007 2006
£m £m
Bank loans and loan notes –24.2
Trade creditors 3.2 2.0
Accruals and deferred income 13.1 9.7
Taxation and social security 1.0 8.0
Obligations under finance leases – 0.1
17.3 44.0 
Details of borrowing and security arrangements are set out in Note 20 to the Consolidated Financial Statements.
9 Provisions for liabilities and charges
Onerous Restruct-
leases uring Total 
£m £m £m
At 1 April 2006 1.0 5.6 6.6 
Utilised (0.4) (3.6) (4.0)
New provision charged to the profit and loss account 0.4 – 0.4
At 2 April 2007 1.0 2.0 3.0
Provisions represent the best estimate of obligations at the balance sheet date. The provision for onerous lease commitments has 
been calculated at the net present value of rents payable less rents receivable (having taken account of potential void periods and lease
incentives) up to the end of the lease. Allowance has been made for empty rates and agents’ fees. The restructuring provision relates 
to the costs associated with the ongoing operational restructuring.
10 Capital and reserves
Other Profit and
reserve loss account
£m £m
At 1 April 2006 89.6 (498.7)
Loss for the period – (19.1)
Movements relating to share-based payments – 0.2
At 2 April 2007 89.6 (517.6) 
Details of the  Company’s authorised and issued share capital, share premium and capital redemption reserve are given in Note 25 to the
Consolidated Financial Statements.
The cumulative amount of goodwill written off direct to reserves in respect of acquisitions prior to 31 March 1998 is £89.2m (2006: £89.2m)
which arose in connection with the acquisition of rail businesses.
11 Capital commitments
The Company had no capital commitments at 2 April 2007 (2006: £nil).
12 Contingent liabilities
Details are given in Note 28 to the Consolidated Financial Statements.
13 Post balance sheet event
Details are given in Note 29 to the Consolidated Financial Statements.  Jarvis plc
Meridian House
The Crescent
York
YO24 1AW
T+44 (0)1904 712712
F +44 (0)1904 712011
Email: enquiries@jarvis-uk.com
www.jarvisplc.com