Carillion PLC (LON:CLLN) has named its new chief executive officer, with Andrew Davies - currently boss of privately-owned construction firm Wates Group Ltd - to take over the role from 2 April 2018 when he joins the under-pressure construction and support services group’s board.
The small cap firm, which saw its chief executive Richard Howson depart in July as it issued revenue warnings and suspended its 2017 dividend, said Keith Cochrane will remain as its interim chief executive officer until then.
READ: Carillion jumps on lifeline as it agrees new credit facilities, debt deferrals, disposal to Serco
New appointee Davies has been chief executive of Wates since 2014, and prior to that held a series of senior roles with BAE Systems PLC (LON:BA) over a 28-year period.
Commenting on the appointment, Carillion’s chairman Philip Green said, "Andrew has the ideal combination of commerciality, operational expertise and relevant sector experience to build on the conclusions of the strategic review and to lead the on-going transformation of the business.
READ: Numis Securities joins welter of City brokers cutting targets and estimates for Carillion
“His experience and his people focussed personal style are an ideal combination for our business.”
In late afternoon trading, Carillion shares were nearly 4% higher at 46p.
Carillion saw its shares jump earlier this week after the firm revealed it has agreed new credit facilities and deferrals on some debt repayments, offering a life-line to the firm that has issued two profit warnings this year, and that it is moving ahead with disposal plans as it restructures in the wake of its warning in July.
The group revealed that it had signed a head-of-terms agreement to sell a large part of its UK healthcare business to outsourcing company Serco Group PLC (LON:SRP) for £50.1mln.
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