The MD of Interserve’s UK construction business is to leave the firm as part of major restructure.
Interserve UK construction managing director Gordon Kew (pictured) will depart at the end of September as the company merges its UK and international construction businesses.
Interserve’s international construction boss Paul Franks will head up the new single construction division, with the merger officially completing on 3 September.
The company will also combine its international facilities management business with its UK support services division as part of the changes.
Mr Franks has spent nearly 35 years in Interserve’s construction division. He has been director of its international arm since 2008, managing nine businesses in the Middle East.
An Interserve spokesman said the restructure would not result in any job losses “at this point in time”, but that the new MD would be assessing the division’s resource needs.
Mr Kew leaves the firm after nearly a decade at Interserve. He became UK construction MD in 2016 after stints as MD of UK building and director of UK regional building.
Earlier this month Interserve posted a pre-tax loss of £6m for the six months to 30 June, having recorded a profit of £24.9m for the same period in 2017.
Net debt at the firm ballooned to £614.3m as of the end of June, up from £387.5m a year earlier.
Revenue in the UK construction division fell to £396m, down from the £502.3m recorded in the same period of 2017.
Mr Kew told CN in May that the firm’s construction division would shrink in a bid to target higher margins in the business. He predicted construction turnover would decrease by 10 per cent.
In June CN revealed that Interserve would be exiting the London construction market and London construction boss Jeremy James had left the firm.
Its exit from working in the capital cost Interserve £6m.
Interserve chief executive officer Debbie White said: “These changes support our vision for a simpler, more efficient and more effective Interserve, where people are empowered to make things happen within a clear and strong leadership structure.
“Bringing our UK and International construction and support services businesses together will help us to reduce complexity, support the transfer of people and skills and develop a clear and consistent value propositions for customers wherever they are in the world.”