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Kier CEO exits with immediate effect
The boss of construction contractor Kier has stepped down from the company with immediate effect.
In a trading update today, the company confirmed that chief executive Haydn Mursell has left the company after eight years, with its chair Philip Cox stepping in as executive chair until a replacement is found.
Mr Mursell has been at the helm of the contractor, which is the UK’s second biggest construction firm, for four years. He first joined as its finance director in 2010 before moving up to chief executive in 2014.
The move comes after increasing financial pressure at the company which announced a £250m rights issue before Christmas to reduce debt. The move resulted in its share price falling by 40%.
Sky News also reported last month that one of Kier’s major shareholders, Woodford Investment Management, was pushing for changes in the company’s management.
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Kier is a major contractor in the social housing sector with a number of repairs deals with housing associations, including Notting Hill Genesis and the Guinness Partnership.
The company also signed a 10-year joint venture with Homes England and housing association Cross Keys Homes to supply 5,400 homes last year.
Mr Cox will act as executive chair working closely with Kier’s finance director Bev Dew and chief operating officer Claudio Veritiero to oversee operations. The company confirmed Mr Mursell’s successor will be from outside of the company.
In July last year, the company launched its ‘Future Proofing Kier’ programme which aimed at streamlining the business, drive efficiencies and dispose of non-core operations.
Mr Cox said: “The board believes that, following the completion of the recent rights issue, now is the right time for a new leader to take Kier forward to the next stage of its development.”
The announcement of Mr Hursell’s exit came on the day Kier provided a trading update to the market.
According to the update, Kier was on track to meet its full year expectations for 2019. It added that the company’s rights issue had been successful, reducing average month-end net debt for six months ended 31 December 2018 to £370m from £410m for the six months ended 30 June 2018.
