The engingeering and construction group's deputy chairman will take over from David Jeffries from January 1

Costain has announced that David Allvey will replace David Jefferies as chairman on 1 January next year.

Allvey, who joined the board in 2001, is deputy chairman of the group and chairman of the audit committee.

Jefferies, 73, is retiring next year after almost seven years in the post.

He said: “The time is right to hand over the reins. Costain has a new management team in place, a focussed strategy delivering results and a much strengthened balance sheet available to facilitate future growth opportunities.”

Allvey added: “I would like to pay tribute to David and to thank him for all his hard work and unstinting effort in ensuring a bright outlook for Costain.

“I look forward to leading the Group into the next phase of its development.”

Costain said it expected to appoint a new non-executive director to replace Allvey “in due course”.