SUPPORT services group Jarvis suffered a fresh collapse in its share price after revealing that a key division had fallen into the red.
The group - at the centre of the inquiry into the Potters Bar rail crash - warned that its accommodation services arm would make losses of about £5m, against previous market hopes for profits of £5m.
Jarvis blamed the decline on cost overruns as a number of refurbishment programmes proved to be more complex than expected.
At the same time, Jarvis said its finance director, Robert Kendall, had resigned and that its dividend payout was under review.
That put shares under fresh pressure, with the stock giving back recent gains to stand at levels seen four years ago.
About £60m was wiped from the value of the company following the 27 per cent decline to 130p - a far cry from the 538p seen two years ago.
The accommodation services arm, involved in rebuilding schools and other public-private partnership projects, prompted another share price fall in January when it said contract delays would knock £12m from profits.
Jarvis has not specified the source of the latest warning, although it faced criticism in December for failing to finish work on time at five of eight schools involved in a £55m improvement scheme on the Wirral, Merseyside.
It said most of the problem contracts were now nearing completion and that a substantial restructuring had taken place within the division.
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