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Carillion's new boss to start earlier to lead turnaround of troubled contractor

Andrew Davies will join Carillion as its new boss in January
Carillion's new CEO Andrew Davies

Carillion PLC (LON:CLLN) said its new chief executive will take the helm three months earlier than previously agreed to aid the turnaround of the troubled UK contractor.

Andrew Davies will step down as chief executive of UK construction property services firm Wates Group to join Carillion as its new boss on 22 January, instead of 2 April as announced in October.

Shares rose 1.5% to 16.50p in morning trading.

READ: Carillion inks definitive sale agreement for disposal of bulk of its UK healthcare facilities business

Keith Cochrane will step down as interim chief executive but will remain at Carillion in an advisory capacity to ensure an orderly handover, the company said in a statement on Wednesday.

Davies has been chief executive of Wates Group since 2014 and is also a non-executive director of defence company Chemring Group PLC (LON:CHG).

Carillion chairman Philip Green said: "We are very grateful to the board of Wates Group and to James Wates CBE, their chairman, for their facilitation of Andrew's earlier appointment. It is a demonstration of how the sector is willing to cooperate and collaborate to ensure the long term sustainability of UK industry."

His appointment comes about five months after Richard Howson stepped down as chief executive as the company issued a profit warning.

READ: Carillion shares up as stock overhang cleared after biggest shareholder, Kiltearn halves stake

The company has issued three profit warnings this year due to its failure to improve profit margins across UK support service contracts, delays to asset disposals and to the start of a significant project in the Middle East.  

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