8 May 2014
Balfour Beatty has announced that Andrew McNaughton, its chief executive, has stepped down with immediate effect.Â
McNaughton’s departure comes after the group issued a £30m profit warning in the UK for 2014. The company told investors on Tuesday that it expected its UK business to make between £145m and £160m in pre-tax profit this year, rather than the £190m that analysts had expected. Its shares have fallen 20% since the announcement was made.Â
Balfour has issued three profit warnings in the past 18 months. Last year, chief executive Mike Peasland stepped down in the wake of a £50m shortfall, which the company blamed on about 100 problem contracts in its UK regional businesses. Â
This time the fall in revenue was attributed to "adverse market conditions" in its M&E division as well as "further costs increases and delays" in its major building projects division. It also said that it had taken longer than expected to resolve "operational issues".
![](https://www.globalconstructionreview.com/wp-content/uploads/2021/08/520andrew_mcnaughton_.jpg)
Andrew McNaughton (Source: balfourbeatty.com)
Balfour’s troubles have increased speculation that it would sell Parsons Brinckerhoff, the consulting business that it acquired in 2009. The firm said it was carrying out a strategic review, and would sell the company if there was "attractive shareholder value". Â
Balfour said it had appointed chairman Steve Marshall executive chairman until it found a successor for McNaughton. The company, which is the largest construction business in the UK, last year made a pre-tax profit of £187m.