Jarvis was criticised following the Potters Bar rail crash

The troubled engineering group has appointed the former boss of tennis racquet maker Dunlop Slazenger as its new man at the top.

Alan Lovell will join the firm with immediate effect, the company said.

His appointment follows the resignation of Kevin Hyde who quit the embattled company in September.

Tough times

Shareholders gathered at a special meeting to grill chairman Steven Norris as the company warned them of tough times ahead after an "enormously difficult" year.

Mr Norris was accused by shareholders of presiding over a "shambles" as they met and voted by about two-thirds of those present against accepting the company's report on directors' pay.

There are clearly significant challenges ahead Alan Lovell, new Jarvis chief executive

However, Jarvis pointed out that proxy votes cast ahead of the meeting showed an 84% majority in favour.

Shareholders criticised bonus payments of hundreds of thousands of pounds paid to bosses in the year which included the Potters Bar rail crash.

Mr Norris said that because the accident could not be based on management failures it was perfectly justified in making the payments.

Jarvis's shares have lost over 80% in value since the start of 2004 in the aftermath of the bad publicity following derailments on rail tracks it was responsible for maintaining.

Loss-making Jarvis has also faced criticism for some of its public sector contracts.

Turnaround

Jarvis' new chief executive Alan Lovell, has previously worked for worked for construction group Costain as well as Dunlop Slazenger, and has earned the reputation of being a specialist in turning companies around.

Reviving Jarvis' fortunes will be Mr Lovell's main duty as he takes the helm.

"He brings to Jarvis a wealth of experience and a proven track record, including Costain and most recently at Dunlop Slazenger, in turning around difficult business situations," said Jarvis chairman Steve Norris.

Mr Lovell said: "There are clearly significant challenges ahead, but I believe there are also great opportunities for Jarvis and my job will be to ensure that they are realised as fully as possible."

Controversy

Jarvis made a loss of �255.7m last year and saw its debts spiral to �230m, leading City analysts to call the firm's survival into question.

Adding to its problems, the Association of British Insurers recently advised its members that Jarvis was falling short of acceptable standards of corporate governance.

JARVIS SETBACKS Criticised over track maintenance at Potters Bar Criticised over school PFI projects in Merseyside Thrown off Fife school-building project Check Jarvis share price

Since the fatal Potters Bar rail crash of 2002, Jarvis has been at the centre of controversy.

The firm was responsible for track maintenance on the stretch of line on which the fatal accident occurred.

It has also faced criticism for its role in private finance construction and management projects to build schools and university accommodation.

Jarvis has since reduced its involvement in the Private Finance Initiative (PFI) building project.

It is selling its bidding arm, which tenders for school construction projects, to the Vinci group, and has given up preferred-bidder status in four school projects. It will however manage the completed buildings.