Balfour Beatty CEO Steps Down

Balfour Beatty’s Andrew McNaughton has stepped down as Chief Executive of the Group and as an Executive Director of the Board with immediate effect.

The move follows the announcement that the Group is expected to deliver significantly lower pre-tax profits in 2014 than management's expectations at the time of the full-year results announcement in March. Overall the Group pre-tax profits for 2014, at current foreign exchange rates, are now expected to be in the range of £145 – £160million, given current uncertainties in parts of the UK construction business.

The decline in profit expectations is predominantly within the UK construction business, where profits are now expected to be £30million lower than previously anticipated. The Group has reported significant performance improvement in the regional construction business, but the mechanical and electrical engineering (M&E) and major buildings projects businesses have both experienced significant operational issues.

Steve Marshall, Balfour Beatty’s Non-Executive Chairman, will take over as Executive Chairman until a successor is appointed. He said: “Andrew has served the Group for the last 17 years in a wide variety of roles. I would like to thank Andrew personally and on behalf of the Board for his major contribution. We wish him well for the future.”