Balfour Beatty chief executive Ian Tyler will step down on 31 March to be replaced by deputy chief executive and chief operating officer Andrew McNaughton.
McNaughton, who is a chartered civil engineer, joined Balfour Beatty in 1997 and became a board member in 2009. He has led the company’s worldwide operations for the last three years and was promoted to deputy chief executive on 1 July 2012 as part of a long-term succession plan.
Steve Marshall, Balfour Beatty chairman, said: “The board is delighted that someone of Andrew’s calibre has developed from within the business and is now ready to take over the role of chief executive from Ian. Andrew has a deep understanding of our customers and operations, and the relentless drive necessary to successfully deliver the strategy that he has been intimately involved in developing.
“On behalf of the board, I want to say a huge thank you to Ian Tyler for his outstanding contribution to Balfour Beatty during his 16-year career with the group, including the last eight years as chief executive. During Ian’s tenure, the business has trebled in size, extended its global reach and its capabilities, particularly in developing professional services following the acquisition of Parsons Brinckerhoff in 2009. It is also testament to his leadership that Balfour Beatty has the depth of management talent that has ensured a smooth succession.”
Tyler commented: “It has been a great honour to have been Balfour Beatty’s chief executive and to have led such a talented group of people.
“Together, we have created one of the world’s leading infrastructure businesses. After eight years, I believe the time is right to hand over to Andrew to lead the business in the next stage of its development. He will be supported by an experienced executive team. I am looking forward to exploring new opportunities outside Balfour Beatty.”
McNaughton said: “It has been a privilege to be part of the leadership team at Balfour Beatty for several years only now surpassed by the opportunity to take over from Ian as chief executive.
“We have a strong company and are in a good position to meet the short-term market challenges and take advantage of the longer term opportunities. I am looking forward to building on the solid platform that we have created and leading us to the next stage of strategic growth.”
The succession announcement coincides with a trading update from Balfour Beatty, in which the company said its overall performance in 2012 was “in line with our expectations”.
Its order book was worth £14.2bn at the end of November but with several major contract wins in December, including a £1.2bn, eight-year deal with National Grid, the value of orders is likely to have topped £15bn at the end of last year.
The company that given tough market conditions, the mix of its order book is “shifting from construction to professional services and support services, and overall, from buildings to infrastructure projects”.