Kier Group’s board has decided to appoint a new leader to head the company, meaning its chief executive Haydn Mursell will stand down and leave the business with immediate effect
Chairman Philip Cox confirmed the board’s decision stating: “The board believes that, following the completion of the recent rights issue, now is the right time for a new leader to take Kier forward to the next stage of its development.”
Shares in the construction, services and property company were trading 0.1% higher at 524.18 pence each in morning trade (22 January) following the CEO departure and a separate trading update.
Haydn Mursell’s departure comes following the company’s attempt to raise new capital late last year via a right issue. The company in December raised £250m via a 33-for-50 rights issue of £64.5m new shares at 409p.
However, just 38% of the rights issue was taken up by investors and the company’s bookrunners were left with taking up the remaining shares. The bookrunners eventually managed to sell the shares they were left with.
Kier is yet to confirm a replacement for Mursell, however, it did say that Philip Cox will act as executive chairman for the time being.
The company said it remains confident to meet expectations for the year ending June 30.