Balfour Beatty boss Ian Tyler steps down

Aaron Morby 10 years ago
Share

Balfour Beatty’s boss Ian Tyler is stepping aside to allow his deputy Andrew McNaughton to take over running the country’s biggest contractor from March.

Tyler, aged 51, has run Balfour Beatty since 2005 and is leaving in April to explore new opportunities outside the company.

He leaves just two months after Balfour’s steady, no-surprises reputation was jolted with a shock profit warning after more than a year of restructuring and streamlining.

During Tyler’s stewardship, the contractor trebled in size, notably moving into higher-end engineering design with the purchase of Parsons Brinckerhoff and strengthening its infrastructure services capability.

Balfour has strategically broadened its geographical spread along with its skill base in key US, Middle East, Australian and, more recently, Canadian markets.

Tyler joined Balfour Beatty in 1996 from the Hanson Group where he was finance director of ARC.

Steve Marshall, Chairman, said: “It is also testament to his leadership that Balfour Beatty has the depth of management talent that has ensured a smooth succession.”

Balfour in November forecast that profitability will drop “slightly” as it struggled to negotiate lower prices with suppliers to reflect market conditions.

This saw shares dive 18%, its worst tumble since October 1998 and prompted a full-scale charm offensive with city analysts about medium-term growth prospects in global markets.

McNaughton, who became deputy CEO last July, has a “deep understanding of our customers and operations, and the relentless drive necessary to successfully deliver the strategy that he has been intimately involved in developing,” Marshall added.

McNaughton, who joined the board in 2009, has been instrumental in developing the group’s global strategy to move into higher growth sectors, like the energy markets.

In a trading statement this morning Balfour also stressed it would take further action, both operationally and strategically where necessary, to deal with the downturn in its UK market.

“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.”

The firm added: “In the medium and long term, we are confident that our position in infrastructure markets, our focus and competitive advantage in the transportation, rail, power, water and mining verticals, and our initiatives to access growing markets such as Australia, Canada, Brazil and India will stand us in good stead as well as making the business more robust.”

Latest news

Plans lodged for Manchester student tower and offices

Plans lodged for £250m One Medlock Street mixed-use office and student scheme
2 hours ago

Glasgow civil engineer banned for £100k Bounce Back Loan abuse

Sole director handed 11-year ban for falsely claiming two loans for personal gain
7 hours ago

Unite passes union hotel job probe findings to police

Independent reports raise concerns of ‘potential criminality’ around union's £100m hotel and conference centre
8 hours ago

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
18 hours ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
18 hours ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
19 hours ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
18 hours ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
20 hours ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
19 hours ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
3 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
2 days ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
2 days ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
2 days ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
2 days ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
3 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
3 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
3 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
3 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
3 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
3 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
3 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
3 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
3 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
4 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
3 days ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
4 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
4 days ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
4 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
4 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
4 days ago

Contractor services