Kier Group chief operating officer Claudio Veritiero is to step down from the board and leave the business “with immediate effect”.
Veritiero’s responsibilities will be taken on by chief executive Andrew Davies and chief financial officer Simon Kesterton.
The news came as Kier announced that its trading was in line with expectations, ahead of its annual general meeting (AGM).
Since 30 June 2019, the business has been awarded around £1bn of new contracts and been appointed to a number of new frameworks including the £30bn Construction Works and Associated Services framework for the Crown Commercial Service.
Kier added that its working capital and net debt both were also both in line with the board’s expectations.
The business is set to cut around 1,200 jobs by 30 June next year and annual cost savings of at least £55m in the financial year to 30 June 2021. It is also outsourcing its IT and fleet management activities and is selling its offices at Tempsford Hall, Bedfordshire, and Foley Street, London, as well as changing the structure of senior management. Adam Walker, who joined the board on 1 January 2016, will step down from 31 December, with Justin Atkinson, the senior independent non-executive director, assuming the role of chair of the risk management and audit committee until a successor to Walker has been appointed
Meanwhile Kier is “progressing” the sale of its housing business Kier Living, which has a price tag of around £120m.
Andrew Davies, chief executive, said: “We continue to build the foundations for the future of the group through the execution of our strategic priorities. Our core businesses are performing in line with our expectations and we continue to win work from a number of our major clients, whilst significantly reducing the group’s overheads and costs.”
