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Balfour Beatty boss Andrew McNaughton quits as firm faces more turmoil

Contractor Balfour Beatty chief executive Andrew McNaughton has resigned amid a series of announcements from the firm that point to further turmoil, including a profit warning.

In a statement it said McNaughton had stepped down with immediate effect, including from his role as executive director on the board. Non-executive chairman Steve Marshall is to take over as executive chairman until a successor is appointed. The statement added that the hunt for a replacement would begin “shortly”.

An accompanying trading update warned of further losses to come at the troubled firm with a £30M shortfall expected in the construction business.

The firm is now considering selling consultant Parsons Brinckerhoff, which it only acquired in October 2009.

key points of trading update

  • While most parts of the Group are trading in line with management’s expectations, the firm now expects a £30M shortfall in our UK construction business in 2014.

  • As a result overall Group pre-tax profits for 2014 are expected to be significantly lower than previous expectations, in the range of £145M to £160M.

  • Andrew McNaughton has stepped down as Chief Executive with immediate effect. Steve Marshall, will take over as Executive Chairman until a successor is appointed.

  • A strategic review has led the Group to evaluate options for the possible sale of Parsons Brinckerhoff, conditional on providing attractive shareholder value, it said.

Marshall said: “Andrew has served the Group for the last 17 years in a wide variety of roles. I would like to thank Andrew personally and on behalf of the Board for his major contribution. We wish him well for the future.”

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