Carillion shares soared today after the embattled construction firm appointed a new non-executive director who investors hope will turn the business around.
Alan Lovell was appointed starting yesterday to the board, with wide-ranging responsibilities on the audit, remuneration, nomination, sustainability and business integrity committees.
Lovell has previously been credited with reviving the fortunes of firms as diverse as engineering group Jarvis to iconic sports brands at Dunlop Slazenger, as well as more directly relevant experience before that at construction firm Costain.
He is currently chairman of the Consumer Council for Water, Flowgroup and the Association of Lloyd’s Members (ALM).
The new hire follows last week’s appointment of Andrew Davies, currently head of privately owned builder Wates Group, as the chief executive in charge of reinvigorating the firm.
Shares rose by 6.74 per cent at the time of writing to reach 47.5p.
Investors have suffered a turbulent period for Carillion’s shares, which have swung wildly in the aftermath of a disastrous July profit warning, which resulted in the resignation of former chief Richard Howson.
Shares fell by almost 40 per cent on the July results day, hitting lows of 40.15p – down from heights of 265p in the last 12 months.
Last week the firm announced it had restructured some of its debt, pushing shares up by more than 20 per cent.
Carillion chairman Philip Green said the firm is “very pleased” that Lovell has joined.
Green said: “He has very relevant experience of the challenges currently faced by Carillion and I look forward to his contribution as we move forward with our disposal and cost saving programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion’s balance sheet”.
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