Carillion Shakes Up Top Team as Part of Rescue Plan

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Carillion, the struggling construction and outsourcing group, is shaking up its top team in an effort to turn itself round following a profit warning that left the company’s future in doubt, the Financial Times reported. Finance director Zafar Khan is stepping down under an agreement with Keith Cochrane, the former chief executive of Weir who agreed to temporarily run the company following a shock profit warning in July. Emma Mercer, the finance director of Carillion’s construction arm, will take Mr Khan’s place as CFO. Richard Howson, who had been sacked as CEO in July but remained as chief operating officer, will leave by September 30, with Andy Jones, president and chief executive of Carillion Canada, taking his place from October 1. Carillion, which employs 50,000 people worldwide, has been fighting for its life after admitting in July that problems with four contracts in the UK, the Middle East and Canada would cost it £845m in writedowns. The company’s troubles have been compounded by its net debt, which has rocketed from £42m in 2010 to £695m in the first half of 2017 and is expected to reach £800m in the second half. It also has a £587m deficit in its pension scheme, which has obligations of £3.4bn. Read more. (Subscription required.)