The fall-out from the financial crisis engulfing builder Carillion deepened today as the beleaguered business ousted a raft of senior managers.
The firm confirmed the departure of financial director Zafar Khan — to be replaced by internal candidate Emma Mercer — as well as the axing of a host of divisional directors.
Carillion’s former chief executive Richard Howson, who stepped down in July following a shock profit warning, was originally staying on for 12 months but will now leave at the end of the month.
Shares in Carillion have collapsed more than 80% after the devastating update two months ago, which raised serious concerns over the company’s balance sheet.
The business wrote off £845 million on under-performing contracts, axed the dividend and put parts of the business up for sale to ease the pressure on its finances, which are weighed down by a £600 million pension deficit.
It also has a debt pile likely to soar to £800 million this year.
Analysts say an emergency rights issue to raise some £500 million looks all but inevitable at the business, now being run by interim boss Keith Cochrane.
Shares fell a further 1.9p, or 4%, to 42p today.
The company refused to comment on whether Khan, who was on a package worth up to £1.5 million, would get a payout after leaving with “immediate effect”, although sources said the move was unlikely.
His replacement, Mercer, has been with the business since 2008, most recently as finance director of the UK construction business.
In the shake-up, Canada chief Andy Jones becomes chief operating officer of the overall group from next month.
Adam Green, the head of its construction services division and Nigel Taylor, managing director of Carillion Services, will leave with Howson at the end of the month.
And Shaun Carter, the group strategy director, will go by the end of the year.