Jarvis Porter has warned that it will make a significantly greater loss in the second half of the year to February 2001 than the 1m previously expected.


It blamed problems in its creative packaging and healthcare divisions on a difficult market and delays in commissioning new equipment.


The firm had ordered a Heidelberg CD and a Vision Packaging press but neither was commissioned on time.


Part of the problem was a management issue, said a JP spokesman. Jarvis Porter said it was apparent that its creative packaging division had not been tightly managed and its budgets were optimistic.


Jarvis Porter has undergone a board restructure over the last two months. Hugh Donaldson left in October under mutual agreement and Alan Mellor, who was managing director of speciality print, also took on creative packaging.


The healthcare business, headed by Gary Kenning also responsible for labels has suffered difficult market conditions and Jarvis Porter is implementing plans to improve this area.


Meanwhile, the groups speciality print operation continued to trade ahead of plan and last years results.


In an effort to strengthen the board, Michael Maher has become executive chairman and Malcolm Baggott, formerly chief executive of Vitec Group, joined the board as a non-executive director on 19 December.


Stephen Darlington, who Jarvis Porter was due to appoint as finance director in January, will not join the firm and Rob Ainsworth will remain as interim finance director.


Story by Jeremy Allen