Britain's Kier names former Carillion CEO-designate to top job (updated)

Carillion

19/03/2019 07:52

* Andrew Davies will succeed Haydn Mursell
    * Analysts point to Davies' operational experience
    * Davies never got chance to take up post at Carillion

 (Adds details, background)
    By Arathy S Nair and Sangameswaran  S
    March 19 (Reuters) - British builder Kier Group  KIE.L 
named former Carillion CEO-designate Andrew Davies to its top
job on Tuesday as it strives to cut debt and respond to problems
afflicting the wider outsourcing industry.
    Davies will succeed Haydn Mursell who stepped down as chief
executive officer in January a month after many of the company's
shareholders snubbed a new issue of stock.  urn:newsml:reuters.com:*:nL3N1ZM2EC
    Davies, 55, will be tasked with the challenge of whittling
down Kier's 180 million pound ($239 million) debt pile and
rebuilding confidence in the company.  urn:newsml:reuters.com:*:nL3N20Y1OC
    Davies, who worked with BAE Systems  BAES.L  for 28 years in
many senior roles, had been due to take over as CEO of Carillion
before it collapsed in January 2018. He will take on the top job
at Kier on April 15.
    The Briton was previously CEO of privately held construction
services company Wates Group Ltd from 2014 to 2018.
    "He has good operational experience in the industry. So from
that point of view, it seems a sensible and obvious choice,"
Canaccord Genuity analyst Aynsley Lammin said.
    The market would be keen to see Davies' clarify his
strategy, including his plans for Kier's cost savings program
launched in 2018, Lammin added.
    Shares in Kier Group fell more than 16 percent on March 11 
after it disclosed an accounting error that pushed up its debt
for 2018.
    Investors have become increasingly nervous about outsourcing
and construction markets in Britain following the collapse of
Carillion early last year and Interserve being placed into
administration last week.
    Kier shares, which have lost more than 75 percent since
their peak of more than 2000 pence in 2007, rose 2 percent to
493.8 pence at 1015 GMT. They were among the top gainers on the
UK midcap index  .FTMC .
    Kier, which has contracts for major construction projects in
Britain including London's Crossrail link, is set to report
half-year results on Wednesday.
 ($1 = 0.7537 pounds)

 (Reporting by Justin George Varghese and Sangameswaran S in
Bengaluru
Editing by Anil D'Silva/Keith Weir)
 ((justin.varghese@thomsonreuters.com; Tel: +91 80 6749 3486;
Reuters Messaging:
justin.varghese.thomsonreuters.com@reuters.net))