Kier Group’s chief executive Haydn Mursell is to stand down from the board of directors and leave the business with immediate effect.
Until a new chief executive is appointed, Kier’s chairman Philip Cox will act as executive chairman, working closely with group finance director Bev Dew and chief operating officer Claudio Veritiero. A search for an external successor to Mursell will start immediately.
Mursell’s departure follows reports that Kier shareholders were pressing for executive changes after a discounted £264m rights issue late last year which had an uptake of only 38% from shareholders, the lowest percentage for a UK rights issue since 2012.
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.”
In a separate trading update Kier added that it was on track to meet expectations for its current financial year.
Its balance sheet at 31 December 2018 was bolstered following the receipt of £250m net cash proceeds of its rights issue late last year, which also helped reduce the company’s net debt to around £130m, compared to £239m at the end of the previous year.
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