'Sabotage' claim fails to lift Jarvis

RAIL contractor Jarvis again aired the possibility of sabotage as a cause of the Potters Bar tragedy. In a statement to the Stock Exchange, its board said photographs indicated that inner nuts on a key rear stretcher bar had been adjusted in the 48 hours before the accident - during which no maintenance was carried out. Consequently, 'sabotage cannot be discounted'.

Investors were unconvinced and the shares briefly slumped to 340p, closing 13 1/2p off at 371p. Jarvis said it has 'extensive third-party liability insurance' up to £155m, 'which covers gross negligence'.

Its market value has shrunk £200m since the derailment. Jarvis earns 40% of its profits from rail. A Jarvis consortium was this month named preferred bidder to maintain London Underground's Jubilee, Northern and Piccadilly lines.

Michael Foster at broker Baird valued Jarvis shares at about £4 before the accident. Balfour Beatty shares have almost doubled since the Hatfield disaster (for which Railtrack took responsibility). Jarvis won the East Coast line maintenance contract from Balfour.