Ian Tyler鈥檚 replacement Andrew McNaughton welcomed as safe pair of hands
The surprise announcement yesterday that Balfour Beatty chief executive Ian Tyler is to step down has left the City relatively unmoved, with the 拢11bn turnover firm鈥檚 share price remaining stable and analysts welcoming the appointment of Andrew McNaughton in Tyler鈥檚 place.
In a statement yesterday, the UK鈥檚 largest contractor said that McNaughton (pictured left) - who is currently deputy chief executive and chief operating officer - would take the reins from 31 March.
Tyler, who has led the group for eight years, will remain with the company until the end of April to 鈥渆nsure a smooth transition鈥�, the firm said.
Under Tyler (pictured left), Balfour Beatty has trebled in size and has diversified globally through acquisitions such as Parsons Brinckerhoff in 2009.
More recently he has overseen the ongoing restructuring over the past year and a profit warning two months ago which saw a sharp drop in shareprice.
Balfour Beatty鈥檚 share price fell around 3% on the news, but was up around 7% on early trading this morning.
Howard Seymour, Numis Securities analyst, said Tyler had had a 鈥渇antastic鈥� period in charge and dismissed suggestions his departure was connected to the firm鈥檚 November profit warning.
He said McNaughton鈥檚 appointment was a 鈥渘atural succession鈥�, after he became chief operating officer in 2009 and then deputy chief executive last year. 鈥淭his is something long in the planning - although it has perhaps come a little earlier than expected,鈥� he said.
Panmure Gordon Analyst Andy Brown said under Tyler鈥檚 leadership Balfour Beatty had undergone a period of dramatic transformation, evolving from a largely UK-based construction business to a global infrastructure and professional services company.
He said although the move was a surprise, McNaughton鈥檚 appointment was unlikely to herald any major changes to the firm鈥檚 overall strategy. 鈥淢cNaughton has been part of the development of their strategy, so we expect they will carry on with what they鈥檙e doing,鈥� he said.
Investec analyst Andrew Gibb said there was little detail as to the reasons behind Ian Tyler鈥檚 decision to step down. 鈥淚t may be a surprise to some in terms of timing, given the fundamental restructuring on-going within the group at present.
But he said McNaughton 鈥渨ould appear to be a logical replacement鈥�.
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