黑洞社区

John Dodds winces when reminded of the comments he made after announcing Kier鈥檚 interim results on 27 February. The chief executive described the City as 鈥渁 pack of ill-informed sheep鈥�.

The reason for his invective was that despite the firm鈥檚 strong performance over the previous half year, including an 18% rise in turnover to 拢1.2bn, its market cap had fallen 40% to 拢450m in the four months after the Northern Rock debacle. There is no hint of a retraction, but this time round he is careful to pepper the interview with the rider: 鈥淭hat was off the record 鈥︹€�

Discretion is not something that comes naturally to the Durham-born former civil engineer but today he is giving it his best shot. You might wonder why he bothers. Despite his bluntness 鈥� maybe even because of it 鈥� Dodds remains a popular figure in the City. One of the analysts he took a swipe at says: 鈥淗e鈥檚 a straight-talker, which is refreshing. There aren鈥檛 many other chief executives out there you鈥檇 want to go out for a beer with.鈥�

His comments went down even better among his staff. One presented him with a bottle of Black Sheep beer. This raises a smile as he sprawls back in his chair. But things have got a little more serious since February. First there was April鈥檚 dramatic slump in the housing market. The sector accounts for a quarter of Kier鈥檚 profit and Dodds says reservation levels have fallen by about two-thirds in recent weeks, which tallies with the picture presented by the Home Builders Federation recently.

April also brought the Office of Fair Trading鈥檚 investigation into cover pricing 鈥� Dodds is at pains not to call it 鈥渂id rigging鈥� 鈥� in which Kier is implicated.

But it is the housing crisis that has led Dodds to rethink the business: 鈥淲e鈥檙e assessing our reaction to the changes in the marketplace and examining all avenues, including a restructure,鈥� he declares.

Dodds explains that the reappraisal has also been triggered by the boom in the social housing sector and, in particular, Sir Bob Kerslake鈥檚 appointment as boss of the Homes and Communities Agency in March. 鈥淚 have a lot of respect for Bob and we will reposition ourselves to take advantage of all the work in the next few years.鈥� He cites an annual workflow of 拢5bn and you can see the glint in his eye. The plan is to grow the social housing business from 拢100m to 拢250m in two years.

So, more social housing work then. But what else can we expect from the new-look Kier? 鈥淜ier has been roughly this shape for a very long time,鈥� says Dodds. 鈥淭he restructure will bring the big business units closer together. Lines of communication will strengthen and we are reviewing the reporting structures.鈥�

I鈥檓 having dinner with my chairman tonight to discuss the succession plan. Not that you should read anything into that

He鈥檚 purposefully vague on the detail, adding: 鈥淭he restructure is in its very early stages and won鈥檛 be completed until the end of the year.鈥� He is quick to rule out acquisitions along the way, though.

As for the OFT inquiry, Dodds complains that it is occupying more of his time than he would like (Kier was one of the 112 construction firms accused of bid rigging by the OFT on 17 April). He estimates it takes up an average of one day a week although he is keen to stress that his first priority 鈥渋s to run the business, which doesn鈥檛 mean burying my head in this inquiry鈥�.

Asked whether he would like the OFT to publish the list of nine contractors accused of more serious allegations of compensation payments, he says not. 鈥淜ier isn鈥檛 one of them and we鈥檝e assured our clients that we鈥檙e not on there, which is enough.鈥�

He is confident clients have understood the company鈥檚 position and says it has not lost a contract opportunity as a result of the probe, but he concedes that the public sector may think twice if there are prosecutions. 鈥淭he risk is that you have a procurement officer who will default to negative.鈥�

There鈥檚 no doubt that there is plenty of fight left in Dodds but, at 62, rumours have swirled in recent years about his departure. It鈥檚 something he is all too aware of: 鈥淚 suppose you鈥檙e going to ask me when I鈥檓 going to retire?鈥� he says midway through the interview. 鈥淚鈥檓 having dinner with my chairman tonight to discuss the succession plan 鈥� not that you should read anything into that,鈥� he adds hastily. 鈥淚t鈥檚 the normal kind of planning that happens in companies.鈥� Pressed for a date, he smiles but reveals nothing more than 鈥渋t won鈥檛 be this year鈥�.

The other big news for Dodds straddles his personal and professional lives. In July he is getting married to Kier鈥檚 finance director Deena Mattar and the 42 year old has been touted as his natural successor. Despite murmurs within Kier about a conflict of interest should she take the top job, the City seems convinced of her suitability. One analyst says: 鈥淪he鈥檇 be fantastic. She symbolises everything the group stands for and has her finger on the pulse of every aspect of the business.鈥�

Dodds chooses his words with even more care than usual. 鈥淥ur preferred succession route would be from within. Deena is one possible candidate but not the only one.鈥�

When asked how others in the industry would remember him, he snorts: 鈥淚鈥檝e no bloody idea. You鈥檇 better ask them. A Luddite, I should think!鈥� And he politely declines when asked for the names of those construction bosses he admires and those he doesn鈥檛. But you can see he鈥檚 fighting the urge to lounge back in his chair and reel off the names.