International infrastructure services group Balfour Beatty is cutting more than 150 jobs from its troubled UK construction business.
The move follows the company’s disclosure in April of a £50 million shortfall in the division after revenues in the first months of the year dipped by almost a quarter.
The company blamed the issue on extremely difficult trading conditions in the period, which saw public contracts dry up and increasing competition in the regions.
Balfour last month said it expected the business to benefit from cost efficiencies being brought forward and an expected second-half recovery in operational performance in the construction arm.
The company yesterday updated the markets on progress being made in the division, and confirmed that former Bovis Lend Lease UK chief executive Nick Pollard had been appointed as new CEO.
The firm said Mr Pollard had direct hands-on experience of leading performance turnaround in construction businesses and major projects.
One of his first jobs will be to oversee a major rationalisation of the firm’s regional construction business units.
A review of the viability of the 21-unit regional structure, including the company’s significant Scottish estate, has led to a decision to close three locations at Dartford, Rochdale and Doncaster.
The offices, which each have between 50 and 90 staff, collectively delivered around £120m of the £1.5 billion revenues achieved by the construction division in the last financial year.
Mr Pollard has also been tasked with driving stronger profitability in the business and other elements of the restructuring plan, include looking at operational excellence and the importance of focusing on customer needs.
“I am looking forward to the opportunities and challenges that trading successfully through tough market conditions always brings to construction companies,” Mr Pollard said.
Group chief executive Andrew McNaughton said: “Nick’s focus on enhancing performance in mainstream construction, in the UK as well as overseas, combined with his advisory roles for investors and Government, will be invaluable in bringing fresh ideas to the CSUK business and broaden the skills of the senior management team.”
Confirmation of the new appointment came as Balfour Beatty secured a £110m contract to construct the 43-storey Providence Tower residential scheme for Landor, a wholly owned subsidiary of the Ballymore Group. Upon completion, the structure will be the tallest building ever constructed by Balfour Beatty in the UK.