Troubled Carillion announces new chief executive

 
Jasper Jolly
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Carillion has announced a new chief executive who will be tasked with turning around the struggling construction firm.

The firm has poached Andrew Davies from privately owned builder Wates Group, where he has been boss since 2014.

Davies, who previously rose through the ranks at weapons manufacturer BAE Systems over 28 years, will start at Carillion on 2 April, with current interim boss Keith Cochrane continuing to steer the firm until then.

Carillion has suffered an annus horribilis as a string of crises have laid its shares low. Former chief executive Richard Howson stepped down in July after issuing a big profit warning following a massive £845m writedown on contracts.

Read more: Exclusive: Carillion locked in £200m Qatar FIFA World Cup contract row

City A.M. last night revealed that one of the contracts in question relates to work in Qatar for the 2020 Fifa football world cup. Some £200m of money remains unpaid because the Qatari firm claims Carillion failed to fulfil obligations, according to an inside source.

Investors have been led on a turbulent ride as new development have caused huge swings in its share price. Earlier this week the firm announced it had restructured some of its debt, pushing shares up by more than 20 per cent.

In its announcement the firm lauded Davies's "turn-around" skills.

Carillion chairman Philip Green said, "Andrew has the ideal combination of commerciality, operational expertise and relevant sector experience to build on the conclusions of the strategic review and to lead the on-going transformation of the business.

"His experience and his people-focused personal style are an ideal combination for our business."

Read more: Carillion share price soars as it updates the market on restructuring

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