Potters Bar firm under fresh fire

FRESH allegations of lax safety standards at rail contractor Jarvis will add to tensions at its annual results presentation today when it is likely to report a sharp increase in profits. Jarvis was responsible for maintaining the points at the centre of the fatal Potters Bar rail crash in May.

The shares have slumped more than 170p since. They rose 7p on Monday to 323 1/2p.

Although it argues that the points may have been sabotaged, a report that one of its safety training courses was sloppily run reinforced fears that investigations by rail authorities may reveal deeper problems. Jarvis said the course was the first stage in safety training.

Analysts are hoping chief executive Paris Moayedi will allay their fears today. Jarvis may find it harder to win new contracts until the cause of the disaster is clearer. At the very least, publicity over the crash may force it to boost standards at the expense of profits.

Sales are forecast to rise from £726m to £894m, while underlying profits are seen rising from £31.8m to £48.5m.