Jarvis today said it had "drawn a line" under its troubled financial situation after it completed the final pieces of a multi-million pound sell-off.

The company, which has its rail headquarters based in York, announced it had sold its interests in tube lines, and had extended its financing arrangements until March next year.

It netted £146.8 million in the tube deal, which ratified the decision of shareholders on Christmas Eve to dispose of its interests.

The company also signed refinancing agreements for 14 of its largest unfinished construction projects which includes plans to build new hospitals and university buildings.

Late last year, Jarvis sold off rail property in York and the lease on its company headquarters in a bid to raise cash to settle increasing debts, deciding to move into smaller offices at Meridian 2, off Blossom Street, York.

Network Rail bought the lease at Jarvis House and other property across the city, including York Central, in a £25 million deal.

Jarvis made the decision to dispose of a number of its UK and European interests in an effort to reduce debts of more than £230 million.

Shareholders had been warned that failure to back the sell-off could have affected the company's ability to "continue to trade".

The company said it had now achieved its two key objectives of "obtaining financial contributions to assist with the funding of the completion of the projects, and being released from its related liabilities wherever possible".

The board also announced that it had completed negotiations with its "core lenders" and binding documentation had been signed guaranteeing finance for Jarvis until March 27, 2006.

That will be music to the ears of York employees of Jarvis Rail, who feared the company's continuing problems could affect their jobs.

Alan Lovell, group chief executive of Jarvis plc, said: "The completion of these three interrelated transactions draws a line under Jarvis's troubled financial history and enables us to focus on the future development of our promising core businesses of rail, roads and plant hire. In addition we will be completing all construction work and bringing this activity to a close."

Meanwhile the takeover of Meridian 2 scuppered plans by Agilisys, - the former IT division of Jarvis but now a standalone company - to occupy part of the building.

All its 250 staff had to move to temporary overspill offices on the former Transco site at Heworth Green.

But today, Agilisys revealed that following negotiations with Network Rail everyone would be moving into new premises in York's Hudson House by the end of April.

Updated: 11:51 Wednesday, February 02, 2005