May 30, 2012 / 7:18 AM / 7 years ago

Cape names new CEO to tackle Algeria troubles

(Reuters) - Cape Plc CIU.L named a new chief executive on Wednesday, filling a post that has been vacant since March in a move that comes less than a week after a shock profit warning from the resources industry services provider.

The company said Joe Oatley, former CEO of British engineering company Hamworthy will take over as CEO at the end of June, replacing Martin May, who stepped down unexpectedly earlier this year after six years at the helm.

Brendan Connolly, a non-executive director who was appointed CEO on an interim basis, would be reappointed to the audit, remuneration and nomination committees, Cape said.

News of Oatley’s appointment comes two months after the company stunned investors and analysts by announcing May’s departure soon after Cape said the timing of the work releases on a key project had been slower than anticipated.

Just last week the company said it would take a charge for losses on that project in Algeria — one of its two largest contracts — that will hit profit for the year.

Shares in the company, which provides insulation, painting, coatings, and industrial cleaning services to plant operators in the energy and mining sectors, were up 7 percent at 246.5 pence at 0705 GMT on Wednesday on the London Stock Exchange.

They have shed nearly 29 percent of their value since the profit warning issued on Friday.

Reporting by Abhishek Takle in Bangalore; Editing by Roshni Menon

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