Davies will be succeeded by Stuart Togwell, currently Kier’s Executive Director and Group Managing Director of Construction.

Matthew Lester, Chairman, said: “I would like to thank Andrew for his exceptional leadership over the last six years which has transformed Kier.

“We proudly remain one of the UK’s leading infrastructure services, construction and property groups. Under Andrew’s leadership the Group has increased its resilience, strengthened its financial position and currently has a record order book of over £11bn.

“Furthermore, during his tenure, Kier returned to the FTSE250 and recommenced dividend payments and has built a culture based on safety, delivery, discipline and performance excellence.

“Andrew and his management team set out a clear strategy, purpose and vision for the Group, initially to deliver its medium-term value creation plan and latterly to deliver long-term sustainable growth – and with invigorated and motivated colleagues, Kier is realising this ambition.

“On behalf of the Board and all his colleagues, I wish him the very best in everything he does.

“Following a thorough internal and external selection process, the Board is delighted to appoint Stuart Togwell as its new Chief Executive. Stuart has played a pivotal role in Kier’s transformation and the Board is confident that his skill set is ideally suited to leading Kier through the next chapter of its development and to deliver long-term sustainable growth.“

Davies said: “It has been an absolute privilege to lead Kier and to transform the Group into a strong and sustainable business that benefits all stakeholders. I want to thank all the colleagues for their support, hard work and commitment over the last six years in building the foundations to ensure Kier remains a leading infrastructure services, construction and property company that is vital to the UK and is better placed than ever to succeed.”

Stuart Togwell will take over in November

Togwell added: “I am honoured to be appointed as the next Chief Executive and look forward to working with Kier’s exceptional teams to drive success and growth and deliver for our customers, our communities and this industry that I am so passionate about.” 

A trading update today from Kier confirmed revenue and profit is in line with expectations with full results due to be published in September.