Wates chief quits to join Carillion

Wates has announced chief executive Andrew Davies will leave his role to join Carillion as its chief executive in April next year.

Wates’ chief financial officer David Allen will become acting chief executive when Davies leaves his role on 10 November this year, with the company now starting the search for a permanent successor.

Davies will take up his role at Carillion on 2 April 2018. He has been with Wates since 2014, with the aim of pushing the business up to a turnover of £2bn. Wates hit a turnover of £1.5bn in its most recent full-year results.

Carillion has been without a CEO since former chief executive Richard Howson stepped down following a major profit warning in July, with the company revealing an £845m provision for problem contracts, primarily in its PPP division and overseas markets.

Keith Cochrane took up the reins as interim chief executive following Howson’s exit, and will remain in his position until Davies takes up his new role.

Carillion is currently on site at a number of high-profile developments in the North West, including the £163m Angel Gardens private-rented scheme for Moda Living.

It has also due to build a £300m mixed-use development, named Found Space, on the site of the former Bauer Millett garage in the city centre.

Projects Wates is working on in the region include Stockport’s mixed-use Redrock project, which is due to complete later this year.

Carillion chairman Philip Green said: “Andrew has the ideal combination of commerciality, operational expertise and relevant sector experience to build on the conclusions of the strategic review and to lead the on-going transformation of the business.

“His experience and his people-focused personal style are an ideal combination for our business. We are pleased that he has agreed to join us and we are grateful to Keith Cochrane for his interim leadership of Carillion.”

Wates chairman James Wates added: “When Andrew leaves, he will do so with the company in a strong position and well on its way to achieving its strategic goal of becoming a sustainably profitable £2 billion turnover company.

“It’s been a pleasure to work with Andrew over these past four years, and I have thanked him for his outstanding leadership in growing the business, building a strong management team, and ingraining our core values throughout the organisation.

“On behalf of the shareholders and the Board, I wish him the best for the future. The board is grateful to David Allen for agreeing to take over as acting chief executive until a permanent successor is appointed.”