Kier chief executive to step down after six years in charge

Kier chief executive Andrew Davies is leaving the business at the end of October after six years in charge.

Davies, who will be 62 by the time he retires, is being replaced by the firm’s group managing director of construction Stuart Togwell.

Davies arrived at Kier in spring 2019 after a planned move to become Carillion chief executive the previous year collapsed when that firm imploded at the start of 2018.

Davies spent more than 25 years at BAE Systems before joining Wates in 2014 as group chief executive, replacing Paul Dreschler.

He is widely credited for reviving the fortunes of Kier after replacing Haydn Mursell who went after eight years in early 2019.

At his first annual results presentation with Kier, Davies was forced to preside over a £245m loss for the year to June 2019. At his most recent one, in September last year, he was able to say that the firm’s recovery was complete, the symbol of which for many was the payment of its first annual dividend in six years.

The firm’s average month-end net debt at one stage stood at close to £550m but in a trading update this morning the firm said this has been hacked down to £49m. The update added its order book was £11bn and that trading for the year to June will be in line with expectations when it announces its full year results on 16 September.

Analysts are expecting the company, which returned to the FTSE 250 list of the UK’s biggest quoted companies last year, to return to a net cash position by early 2026.

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Davies said: “It has been an absolute privilege to lead Kier and to transform the Group into a strong and sustainable business that benefits all stakeholders. I want to thank all the colleagues for their support, hard work and commitment over the last six years.”

Paying tribute, Kier chairman Matthew Lester said: “Under Andrew’s leadership, the Group has increased its resilience, strengthened its financial position and currently has a record order book of over £11bn. Furthermore, during his tenure, Kier returned to the FTSE 250 and recommenced dividend payments and has built a culture based on safety, delivery, discipline and performance excellence.”

Togwell joined Davies at Kier from Wates in summer 2019 as group commercial director before taking over as construction director at the start of 2023 when incumbent Liam Cummins left to join cladding contractor Permasteelisa as chief executive. Kier has not said who will replace Togwell as construction boss.

The news that Davies is leaving means that the chief executives of two of the top three biggest quoted contractors will have left within weeks of each other. Balfour Beatty boss Leo Quinn goes next month after a decade in charge.