Shares in support services group Carillion (CLLN) took another tumble this week after the troubled company announced an exodus of senior managers. Finance director Zafar Khan is leaving with immediate effect, followed by Richard Howson, chief operating officer (COO). Mr Howson was previously chief executive, but stepped down following the group’s recent profit warning. Adam Green and Nigel Taylor, managing directors of the construction services and services divisions respectively, will leave alongside Mr Howson on 30 September. Group strategy director Shaun Carter will also exit the group by the end of the year.
The departures coincide with the appointment of Lee Watson as 'chief transformation officer'. Mr Watson is a restructuring expert who was brought into the fold on secondment from consultancy Ernst & Young. Emma Mercer, former finance director of the UK construction business, has been appointed chief financial officer, while Andy Jones, president and chief executive of Carillion Canada, will replace Mr Howson as COO.
Carillion has been going through a rough time in recent months after a contract review unearthed deterioration in cash flows in construction contracts, leading to an £845m provision, a profit warning and the suspension of the dividend.
