SHARES in debt-laden support group Jarvis tumbled as traders reacted to news it was selling off property in York.

As the company faced a critical month in its battle for survival, its shares fell 12 per cent to 9.5p - valuing the company at little more than £14 million.

As reported in last night's Evening Press, Jarvis has announced it is to sell its leasehold on Jarvis House, its York headquarters, as well as its interests in properties on the York Central cite.

They are part of a £25 million sell-off which, if shareholders fail to back, could have an effect on its ability to "continue to trade", Jarvis said.

With debts of more than £230 million, Jarvis is working on measures that would lead to a refinancing deal with lenders.

In the absence of a refinancing, emergency funding of working capital would be required by the second half of January, it warned.

Jarvis said: "Such funding cannot be guaranteed, nor can its terms which may be materially disadvantageous to shareholders. If such support were not forthcoming, the group would be unable to continue to trade."

If successful, Jarvis will focus on UK rail renewal, roads and plant hire work and scale back accommodation services after the cost of too-ambitious bids hit the group.

The company recently handed back rail maintenance contracts to Network Rail following derailments and its involvement in the Potters Bar rail crash. Jarvis said trading continued to be difficult, although the performance was consistent with an update a month ago.

Updated: 10:26 Tuesday, December 07, 2004