LONDON (ShareCast) - Rail maintenance specialist Jarvis hailed the success of its turnaround programme with its “best results for five years”.

In the year to 31 March 2008 the company returned to the black with a profit before tax of £4.5m after taking a £3m charge for exceptional items. In the previous year the company made a pre-tax loss of £13.1m after exceptional charges of £13.4m.

Revenue from continuing operations grew 11.6% to £321.9m from £288.5m a year earlier, with the second half of the year showing a 36% improvement over the first half.

Net debt increased to £38.8m from £23.6m as the company incurred costs related to its exit from loss making facilities, and invested in measures aimed at reducing overheads.

Executive chairman Steven Norris said the UK government is “embarking on a course of substantial improvement to the UK rail network,” with the level of government spending on the rail industry forecast to hit “an unprecedented high.”

“As a result there are significant opportunities in the UK rail market and the board believes we are well placed to capitalise on these,” Norris said.

The company has not declared a dividend.

• News Channel