Morgan Sindall boss departs on profit warning

CONSTRUCTION group Morgan Sindall yesterday announced its chief executive would stand down as it warned on trading levels for this year.

The boardroom shake-up saw chief executive Paul Smith resign with immediate effect, and executive chairman and former chief executive John Morgan appointed in his place.

Senior independent director Adrian Martin will take up the role of non-executive chairman and Patrick de Smedt has been appointed senior independent director.

Elizabeth Peace has joined Morgan Sindall as a non-exec director for the firm.

It comes as Morgan Sindall, which last month won a contract with nuclear power plant Sellafield, said that trading for 2012 would be slightly below previous expectations, as economic conditions have remained “difficult” over the period from July to November.

Reductions in public spending, deferred investment and high levels of competition weighed on trading and the firm said it would cut a number of regional offices.

The construction group also said it was facing a £10m restructuring charge as it aimed at making £55m of annualised savings.