JITTERY investors in York-based Jarvis were today assured that the group would stick by its guns and continue to off-load its non-core businesses and cut costs.

Shares in the troubled rail, construction and engineering group plummeted on Monday after it warned investors that it would take longer than expected to repay its loans.

The company announced in March that it was shedding more than 80 jobs at its Toft Green headquarters in York, reducing its staff there to little more than 200.

In July banks reprieved the company and in September chief executive Kevin Hyde quit and was succeeded by Alan Lovell, said to be a man with a plan.

But speculation deepened about the future of the plc when Jarvis announced on Monday that repayment of its £230 million shortfall was "now likely to be required for working capital purposes".

Shares plummeted 61 per cent from 33 pence to only 13p - slashing the value of the plc from what was £827 million three years ago to less than £19 million.

During the course of the week Jarvis shares rallied, then fell back to their low 13p level by close of play yesterday.

But a spokesman for Jarvis insisted: "We have a distinctive plan in place and the right man to deliver it.

"Alan Lovell has a background in corporate recovery and we are continuing with the strategy of divesting ourselves of non-core businesses, concentrating on road and rail sectors and cutting costs."

There was an acceptance that some deals were taking longer than expected, but they were well in progress.

Jarvis, he said, had already sold its interest in Estonia Freight Railways, and there was an agreement to sell its University Partnerships programme, developing student accommodation, to a consortium called Alma Mater.

Updated: 10:22 Thursday, November 11, 2004