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Carillion Building MD leaves with immediate effect

The boss of Carillion’s UK building division has exited the business following today’s shock profit warning from the company.

The contractor confirmed today that Carillion Building managing director Phil Wakefield had left the company with immediate effect after more than a decade leading the division.

Carillion Construction Services MD Adam Green will assume Mr Wakefield’s responsibilities.

In a shock trading update this morning, Carillion revealed that chief executive Richard Howson would be stepping down from his role and the firm would be “undertaking a comprehensive review of the business”.

Carillion issued a profit warning on contracts worth £845m at 30 June 2017, of which £375m relates to the UK (primarily three PPP projects) and £470m to overseas markets.

It said the contracts could cost the business up to £150m, primarily in 2017 and 2018.

According to his Linkedin page, Mr Wakefield was managing director of Carillion Building for more than 13 years, overseeing the delivery of a number of UK construction contracts.

UK projects in Carillion’s recent buildings portfolio include the £400m contract for phase one of Battersea Power Station, the £335m Royal Liverpool University Hospital and the redevelopment of Anfield.

In the trading update today, the company revealed it would exit construction markets in Qatar, Saudi Arabia and Egypt.

It also confirmed the sale of its business in Oman, Carillion Alawi, for an immediate cash consideration of £12.8m.

The company also confirmed that it would no longer pursue PPP contracts after heavy losses on three major PPP construction jobs in the UK.

Mr Howson will remain with Carillion for up to a year to support a transition period, although he has stepped down from both his role as chief executive and the group’s board.

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