Carillion, the struggling construction and outsourcing group, has announced a swathe of changes to its top team in an effort to turn itself around following a massive profit warning that left the company’s future in doubt.
Zafar Khan, Carillion’s finance director, has left the company with immediate effect, while its chief operating officer and managing directors for its services and construction arms will leave at the end of this month. Shaun Carter, Carillion’s group strategy director, will leave “by the end of the year”.
Their departures follow the exit of chief executive Richard Howson when the profit warning was announced over the summer.
In their place, Emma Mercer – previously finance director for Carillion’s UK construction business – has taken over as group CFO, and Andy Jones – who currently leads Carillion’s Canadian business – will become chief operating officer.
The company has also appointed Lee Watson as “chief transformation officer”, on secondment from consultants Ernst & Young. Carillion appointed EY to assist with a review of its finances shortly after its profit warning in July.
Carillion’s shares have plummeted more than 80 per cent this year, after it revealed a sharp increase in debt and was forced to write down the value of a number of major projects.
It has continued to take on new long-term contracts in the subsequent period – including the first major building work on the UK government’s High Speed 2 railway project – but concerns have remained that the company was struggling to put together a rescue refinancing.
Carillion was originally due to announce its half-year results in August, but the announcement has been pushed back until later this month.
Photo: Reuters