For­mer Car­il­lion boss back in se­nior role

The Daily Telegraph - - Business - By Rhi­an­non Bury

THE for­mer chief ex­ec­u­tive of the be­lea­guered support ser­vices and con­struc­tion com­pany Car­il­lion has been moved back into the role of chief oper­at­ing of­fi­cer while he works his no­tice pe­riod.

Car­il­lion an­nounced in July that Richard How­son, who had been at the com­pany for around two years, would step down after the firm warned on prof­its, send­ing shares down to record lows.

Keith Cochrane, formerly the boss of Weir Group, has been ap­pointed in­terim chief ex­ec­u­tive while the firm searches for a per­ma­nent suc­ces­sor.

The com­pany said at the time that they ex­pected Mr How­son to stay with the com­pany for up to a year while this process was car­ried out. But it emerged yes­ter­day that Mr How­son will in fact be on the front line in fight­ing to get the com­pany back on track, even though he over­saw a profit warn­ing and a hefty £845m write­down to cover the costs of con­tracts that have soured.

Car­il­lion still plans for him to leave within a year, it said yes­ter­day.

Shares in the firm, which were trad­ing above 200p at the start of July, dipped be­low 50p this week, as the price con­tin­ued to slide al­most six weeks after the dis­as­trous trad­ing up­date. They closed the week at 50.6p, up 0.35p on the day.

The firm was sched­uled to re­port its in­terim re­sults next week, but it has de­layed the an­nounce­ment un­til Septem­ber, when Mr Cochrane is ex­pected to make a broader an­nounce­ment on the fu­ture of the com­pany.

An­a­lysts have sug­gested that the firm could con­sider a rights is­sue, or sell­ing off more prof­itable parts of the busi­ness.

Car­il­lion has warned that full-year rev­enues would be be­tween £4.8bn and £5bn – lower than ex­pected – amid “dif­fi­cult” mar­kets and with­drawals from cer­tain ter­ri­to­ries.

On the front line: Richard How­son will be fight­ing to get Car­il­lion back on track as chief oper­at­ing of­fi­cer

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