Kier chief executive Haydn Mursell has resigned from the company with immediate effect.
More from: Kier CEO Haydn Mursell resigns
In a market announcement this morning the company announced that chairman Philip Cox would act as executive chairman heading up the business until a new CEO is appointed.
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 new CEO will come from outside Kier, the company added.
Mr Mursell’s position has been under pressure since the company announced a £250m rights issue in November, which saw its share price plummet 40 per cent following the move.
Earlier this month it emerged that some of Kier’s biggest shareholders were trying to oust the firm’s executives in the wake of the costly capital raising exercise.
In addition to the drop in its share price, Kier also had to pay around £14m to carry out the rights issue.
Mr Mursell joined Kier as finance director in 2010 and took over as CEO in July 2014, the start of Kier’s 2015 financial year.
Under his tenure revenue rocketed from £2.91bn in June 2014 to £4.24bn in June last year. This invovled the company taking on a lot of debt however, with total borrowing almost doubling from £235m to £536m over the same period.
In a trading update also released today the company said it was on track to meet previous expectations for the year ending 30 June 2019.
Proceeds from the £250m rights issue carried out in December helped reduce the company’s net debt from £239m in December 2017 to £130m at the end of last month.
The company expects to have a net cash position by the end of June this year.
Kier added that the new cash injection had allowed it to accelerate supply chain payments.
The company said its order book now stands at more than £10bn.