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.”