Rail tragedy hammers Jarvis

SHARES in Jarvis, the contractor responsible for maintaining the track around Potters Bar, slumped as news of the fatal train crash swept through the City.

Investigators are still trying to discover the cause of the crash, in which six people are confirmed dead, and there is no suggestion that Jarvis is at fault. But a jittery City sold anyway, sending the stock down more than 4% to 498p, stripping more than £30m from its market value.

Jarvis won the £250m five-year contract to maintain the East Coast main line, the scene of the crash, a year ago. It took the work from Balfour Beatty, the contractor responsible for maintaining the track around nearby Hatfield, scene of another fatal derailment in October 2000.

The Hatfield tragedy, in which four died, was blamed on a broken rail and following the accident Railtrack had branded the condition of the track 'wholly unacceptable'. Jarvis declined to comment on its investment on the East Coast mainline track since taking over the contract last April.

The firm is also part of the Tube Line consortium bidding for a 30-year contract to upgrade the Jubilee, Northern and Piccadilly underground lines.

It was fined £7,000 in March by the Health and Safety Executive after a maintenence train hit welding equipment on the track of the West Coast mainline. Several workers were forced to jump clear.

Balfour Beatty shares had slipped 3p to 266p.

Five killed as train derails