Andrew Gay has left Jarvis after it was announced that the traffic systems division he headed is to merge with the company’s rail operations to create an infrastructure division.

Gay, who formerly headed M&E engineer Drake & Scull, joined Jarvis in 1998. Rail systems chairman Kevin Hyde will lead the new division.

Announcing the change at the firm’s annual general meeting, Jarvis chairman Roger Payton said the restructuring was in line with the government’s integrated transport policy.

In other personnel changes, former transport secretary and mayoral candidate Stephen Norris has become a non-executive director. He will replace John Parnaby, who is also a

non-executive director of Scottish Power.

Payton himself retired at the end of the meeting. He will be replaced by deputy chairman Colin Skellett.

Payton predicted that Jarvis would meet its year-end targets after strong trading in the first quarter. He pointed to a strong order book, including its recent preferred-bidder status for the Royal Northern College of Music private finance initiative scheme.

The group’s University Partnerships Programme also came in for praise. The operation can now let 20 000 university rooms on three continents.