Andrew Davies (businessman) explained

Andrew Oswell Bede Davies (born October 1963)[1] is a British businessman, and CEO of Kier Group.

Early career

Educated at the University of Sheffield, Davies joined BAE Systems in 1985.[2] At the company he became Managing Director Land Systems in 2004, Group Strategy Director in 2008 and Managing Director Maritime in 2011.[3]

He went on to be CEO of Wates Group in 2014[4] and was appointed CEO designate of Carillion in October 2017.[5] Originally scheduled to join the financially troubled business in April 2018, Carillion announced in December 2017 that it had brought forward his start date to 22 January 2018.[6] However, Carillion went into liquidation one week before he was due to take up his post.[7]

During 2018, Davies continued as a non-executive director of aerospace and defence contractor Chemring, and also walked several long-distance paths including the 186-mile Pembrokeshire Coast Path.[8]

Kier Group

In January 2019, after turning down job offers elsewhere,[8] Davies was linked with the vacant CEO post at the similarly financially troubled Kier Group,[9] officially confirmed on 19 March 2019,[10] with Davies taking up the post on 15 April 2019,[11] when he announced a strategic review of the group's structure.[12] He later said Kier "was fundamentally a very strong operational company but had lost their way strategically and had taken a number of missteps which had proved, frankly, catastrophic."[8]

Less than two months later, on 3 June 2019, Kier issued a profit warning[13] causing its share price to fall over 40%,[14] and the fall continued on 14 June after reports that Kier would sell its housebuilding division.[15] On 17 June, Davies confirmed the housing division sale, plans to exit other markets, and 1,200 job cuts.[16] Kier's share price fell 17% to 108p, a level not seen since the company's 1996 flotation,[17] and its shares were subject to renewed 'shorting' with one analyst saying "every time Andrew Davies opens his mouth [Kier’s] shares seem to dive by 18% and the consensus in the market is that Kier will go bust."[18]

At the group's AGM in November 2019, shareholders objected to Davies's £2.6m annual remuneration package and an associated long-term incentive scheme.[19]

Notes and References

  1. Web site: Andrew Oswell Bede DAVIES. Companies House. 2 February 2018. https://web.archive.org/web/20180203064144/https://beta.companieshouse.gov.uk/officers/VBRQt-wvyJSlCb3s9xAgEmbGSj0/appointments. 3 February 2018. dead.
  2. Web site: Profile: the new CEO of Carillion, Andrew Davies. Constructing Global. 28 October 2017. 23 December 2017.
  3. Web site: All change at the top for BAE Systems. 25 September 2013. Portsmouth News. 23 December 2017.
  4. Web site: Wates names new chief executive. Construction Index. 23 December 2017.
  5. Web site: Carillion picks new chief executive to lead its rebuild. 27 October 2017. FT. 23 December 2017.
  6. News: Torrance. Jack. Troubled Carillion brings forward appointment of chief executive. 2 February 2018. Telegraph. 20 December 2017.
  7. News: Carillion to go into liquidation. 15 January 2018. BBC News . 15 January 2018.
  8. News: Rogers . Dave . Kier chief says writing was on wall for Carillion weeks before it went bust . 19 July 2021 . Building . 19 July 2021.
  9. News: Kier chief ousted . 4 February 2019 . The Construction Index . 22 January 2019.
  10. News: Kleinman . Mark . Embattled Kier picks chief left stranded by Carillion collapse . 18 March 2019 . Sky News . 18 March 2019.
  11. News: Maatouk . Michele . Kier appoints Andrew Davies as new CEO . 23 March 2019 . Sharecast . 19 March 2019.
  12. News: Morby . Aaron . New Kier chief sets out to streamline £4bn group . 15 April 2019 . Construction Enquirer . 15 April 2019.
  13. News: Prior . Grant . Kier in profit warning as problems spread to building division . 3 June 2019 . Construction Enquirer . 3 June 2019.
  14. News: Karunaratne . Nilushi . Kier woes point to restructuring . 6 June 2019 . Investors Chronicle . 5 June 2019.
  15. News: Hickey . Shane . Kier shares plunge on report it wants to sell housing division . 16 June 2019 . Guardian . 14 June 2019.
  16. News: Prior . Grant . Kier cutting 1,200 jobs and selling housing arm . 18 June 2019 . Construction Enquirer . 17 June 2019.
  17. News: Kollewe . Julia . Davies . Rob . Kier Group to cut 1,200 jobs in attempt to avoid collapse . 18 June 2019 . Guardian . 17 June 2019.
  18. News: Ing . Will . Asset managers up bets against Kier share price . 21 June 2019 . Building . 21 June 2019.
  19. News: Morby . Aaron . Kier suffers shareholder revolt over chief's pay . 18 November 2019 . Construction Enquirer . 16 November 2019.

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