Changes at the top for Balfour Beatty, Persimmon
By Helen Wright08 January 2013
UK-based contractors Balfour Beatty and Persimmon have separately released trading statements and have both also announced new chief executives.
Balfour Beatty said its current chief executive Ian Tyler would hand over to current deputy chief executive and COO Andrew McNaughton from 31 March, 2013. It said Mr Tyler would remain with the group until 30 April to ensure a smooth transition.
In its trading update, the contractor said its order book stood at £14.2 billion (€17.4 billion) at 30 November, 2012, and it expected orders to reach £15 billion (€18.4 billion) by year-end. The company’s order book at the end of 2011 stood at £15.2 billion (€19 billion).
The company said, “In keeping with our strategy and given the difficulties in a number of our markets, particularly in UK construction and European rail, the order book mix is shifting from construction to professional services and support services, and overall, from buildings to infrastructure projects. Due to the longer-term nature and back-end loaded margin profile of these contracts, most of the benefit to revenue and profit arises in 2014 and thereafter.”
Since the start of 2013, Balfour Beatty has won several new contracts, including a £321 million design and construction contract to upgrade sections of the M25 London orbital motorway in the UK in a 50:50 joint venture with Skanska.
Meanwhile, UK home builder Persimmon also announced changes at the top – its chief executive, Mike Farley, is to retire in April and will be succeeded by Jeff Fairburn, currently group managing director and CEO of the Northern division.
Persimmon also issued a trading update ahead of its full-year 2012 results. It said new homes completed during last year were up 6% compared to 2011 to 9,903. Revenues for 2012 are expected to come to £1.7 billion (€2.1 billion), up 12% compared to 2011.