Member Article

Balfour Beatty boss in sudden exit

The boss of national construction firm Balfour Beatty has resigned with immediate effect, a note to shareholders has announced.

Steve Marshall will act as executive chairman until a successor to Andrew McNaughton is appointed.

It follows news that the company will face a £30 million profit shortfall in its UK construction business for 2014.

The significant fall in profit expectations was attributed to “uncertainties” in the UK construction market and operational issues within Balfour’s mechanical, electrical engineering (M&E) and major buildings projects businesses.

Balfour also blamed delays in reaching financial close on a number of projects.

The firm is now mulling the sale of its New York-headquartered engineering and construction business, Parsons Brinckerhoff.

Steve Marshall said: “Today’s trading update is once again disappointing. The Board is committed to rapidly addressing the root causes. As a result, action is being taken to improve operational delivery in the UK construction business.

“Our recent strategic review meanwhile has concluded that a sale of Parsons Brinckerhoff could deliver attractive shareholder value and make Balfour Beatty a simpler and more focussed Group going forward.”

This was posted in Bdaily's Members' News section by Tom Keighley .