Andrew McNaughton is to replace Ian Tyler as Balfour Beatty chief executive.
Ian Tyler, the chief executive of the UK’s biggest contractor Balfour Beatty after eight years at the helm of the company in which he trebled the size of the business.
The announcement comes alongside a pre-close trading update, exactly two months after the contractor issued a surprise profit warning that saw its shares fall 18 per cent.
Mr Tyler will be replaced by Balfour Beatty deputy chief executive and chief operating officer Mr McNaughton.
Mr McNaughton, a chartered civil engineer and Vice-President of the Institution of Civil Engineers, will become chief executive on 31 March. Mr Tyler will stay with the contractor until the end of April to oversee a smooth transition.
Mr Tyler said “It has been a great honour to have been Balfour Beatty’s chief executive, and to have led such a talented group of people. Together, we have created one of the world’s leading infrastructure businesses.
“After eight years, I believe, the time is right to hand over to Andrew to lead the business in the next stage of its development. He will be supported by an experienced executive team.
“I am looking forward to exploring new opportunities outside Balfour Beatty.”
Mr McNaughton said “It has been a privilege to be part of the leadership team at Balfour Beatty for several years only now surpassed by the opportunity to take over from Ian as chief executive.
“We have a strong company and are in a good position to meet the short term market challenges and take advantage of the longer term opportunities. I am looking forward to building on the solid platform that we have created and leading us to the next stage of strategic growth.”
Steve Marshall, chairman, said “Andrew has a deep understanding of our customers and operations, and the relentless drive necessary to successfully deliver the strategy that he has been intimately involved in developing.
“On behalf of the Board, I want to say a huge thank you to Ian Tyler for his outstanding contribution to Balfour Beatty during his sixteen-year career with the group, including, the last eight years as chief executive.
“During Ian’s tenure, the business has trebled in size, extended its global reach and its capabilities, particularly in developing professional services following the acquisition of Parsons Brinckerhoff in 2009.
“It is also testament to his leadership that Balfour Beatty has the depth of management talent that has ensured a smooth succession.”
The profit warning followed a period of restructuring that included 650 job losses, the closure of 35 offices and a reorganisation of the major divisions of the company to make it fitter for the future.