Carillion names new boss to spearhead cost-cut turnaround

CARILLION’S incoming chief executive is to spearhead cost-cutting at the outsourcer as it looks to begin a turnaround after a disastrous few months.

Andrew Davies will join the stricken contractor on April 2 next year, replacing interim boss Keith Cochrane who has been at the helm since a shock write-down in July that dramatically dented confidence in the firm.

Mr Davies has been the chief executive of Wates Group since 2014. Before that he held a series of senior roles at BAE Systems over a 28-year period, and he is also a non-executive director of Chemring Group.

Mr Cochrane, who is the former boss of Weir Group, will remain as the interim chief in the intervening months.

Mr Davies is expected to implement a plan set out by Mr Cochrane last month, which included £75m of costcutting by 2019 and sweeping changes to Carillion’s pension plan, aimed at saving money. A spokesman said Mr Davies “recognises the long-term potential of the company” and sees his appointment as “a great opportunity to lead the business forward”.

He will also be overseeing an ongoing disposals programme that Carillion hopes will raise £300m. Its shares rose 3.95pc to 46p.