13th Feb 2015 15:46
LONDON (Alliance News) - Balfour Beatty PLC Friday confirmed that outgoing finance boss Duncan Magrath will step down from the role and leave the group on May 8.
The construction group is looking for a change in fortunes after being forced to take a GBP70 million hit to the profits of its UK construction arm following a review conducted by audit firm KPMG, bringing the total profit forecast cut for the unit since May last year to about GBP200 million.
However, the company has been the target of takeover attempts, with rival Carillion PLC's move last year falling apart when Balfour opted against putting a stop to the sale of its Parsons Brinckerhoff US asset management arm to WSP Global for GBP820 million in October last year. In December Balfour rejected a bid from John Laing Infrastructure Fund Ltd for its PPP portfolio.
Friday's news comes after last month's move to poach Phil Harrison from corporate services company Hogg Robinson Group PLC as Balfour Beatty's new chief financial officer.
Balfour had previously said that Magrath would remain in the role at least until its full-year results announcement in May.
Earlier this week Balfour Beatty said it had appointed Philip Aiken, the non-executive chairman of FTSE 250 technology company Aveva Group PLC and non-executive director of FTSE 100 National Grid PLC, as its chairman.
Aitken, who will step down from the National Grid role on February 25, is replacing Steve Marshall, the incumbent chairman who is due to retire.
His appointment brought a close to a management shuffle that began last year on Andrew McNaughton's surprise resignation as chief executive in May. McNaughton replacement wasn't found until October, when Balfour Beatty hired Leo Quinn from FTSE 250 defence services company QinetiQ Group PLC.
Balfour Beatty shares were up 0.3% at 235.70 pence on Friday and are up 11% in the year to date. The stock is down about 19% from a year ago.
By Samuel Agini; [email protected]; @samuelagini
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