SUPPORT services group Jarvis said yesterday that it was winning the battle to avoid bankruptcy, despite reporting half-year losses of £283.1m.

Jarvis said the deficit was mainly due to write-offs on the value of its roads business, as well as provisions for construction losses and bad debts.

The figure for the six months to September 30, which compared with profits of £33.7m last year, was expected by investors and marked the nadir of the group's fortunes, chairman Steve Norris said.

The more optimistic tone from Jarvis emerged only days after it announced the sale of its most valuable asset - its stake in the Tubelines consortium that carries out engineering work on the London underground - for £147m.

That proved the key to winning the support of its primary lenders to refinance debts - at £242m at the half-year stage - until March 2006.

Agreement has also been reached to secure funds of £105m to enable 14 construction contracts to be completed, reducing its exposure to additional costs.

Mr Norris said these moves allowed Jarvis to draw a line under the past and look forward with much more confidence to a positive future with a smaller, but profitable, business.

Jarvis has been selling assets to focus on UK rail renewal, roads and plant hire work.