黑洞社区

To some, the answer to construction鈥檚 great unanswered question of recent times 鈥� who will succeed Ray O鈥橰ourke? 鈥� has been hiding in plain sight all along.

The list of would-be Rays is a long one and the latest recipient of the mantle has been, on the face of it, the most obvious. His son.

A civil engineering graduate from Birmingham university, 45-year-old Cathal has been at the family business since 1999 and is currently living in Australia, where he has been based for the past 13 years.

That will change in the next few weeks because, on Tuesday afternoon, the firm announced Cathal would become chief operating officer, a role not used since the days of Tony Douglas, at the country鈥檚 biggest private contractor. He returns to the UK next month.

The news has capped a chaotic 18 months at the business, which began with a suggestion by O鈥橰ourke himself that the firm was looking at a float next year.  Many put this down to a proposal of last resort after a series of succession plans had bitten the dust.

That autumn, there followed the news that Ray O鈥橰ourke was calling time, stepping down, along with his younger brother Des, to be replaced by a former Anglo American executive called Seamus French who would run the firm鈥檚 European arm first before taking over the chief executive鈥檚 role in September 2022.

But, last October, news emerged that French had not lasted a year and would leave by Christmas. Ray would be returning (or, in reality, remaining) as chief executive for the next couple of years.

鈥淚t鈥檚 a good job they鈥檙e not listed,鈥� one chief executive told 黑洞社区 this week when Cathal鈥檚 appointment was announced. 鈥淚t鈥檚 all been a bit scattergun.鈥�

But even private firms, though free from plc rigours, need a succession plan to satisfy investors and with O鈥橰ourke turning 77 next January, no firm more so than the one which bears his name.

He has got to let Cathal get on with it and take a back seat 鈥� although he will find it difficult

Stories about Ray O鈥橰ourke finding it hard to let go are legion. 鈥淭he joke was that he would leave Laing O鈥橰ourke in a wooden box,鈥� remembers one former staffer.

鈥淗e has got to let Cathal get on with it and take a back seat,鈥� another adds. 鈥淎lthough he will find it difficult.鈥�

Cathal had actually stepped down from leading the firm鈥檚 Australia business last year after nearly a decade in charge. He arrived in the country in 2010, a move 鈥� given Australia鈥檚 distance from the UK 鈥� that some say wasn鈥檛 entirely coincidental: 鈥淗e wanted to go out there, to get away from [Ray鈥檚] shadow and prove his worth to the business and industry, to be his own man.鈥�

Another former colleague adds: 鈥淐athal is very different to his father and, for a period, was in his shadow 鈥� which is a big shadow. His move to Australia has been fantastic for him, to be his true self in many ways and become comfortable in his skin and style.鈥�

Cathal says he stepped down last year to take parental leave 鈥� but kept his hand in as a non-executive at the Australia business.

By all accounts, he has enjoyed an enviable lifestyle in Sydney, living in what estate agents might say is a well-appointed location. 鈥淗e has a massive house overlooking one of the bays,鈥� says one source.

When Cathal鈥檚 appointment was announced, temperatures in London were barely above freezing while Sydney was recently basking in heat of 40 degrees. So what, then, has made him swap Australia鈥檚 biggest city for O鈥橰ourke鈥檚 base in Dartford?

鈥淚n a word: duty,鈥� says the ex-staffer. 鈥淗e鈥檚 a lovely bloke, he鈥檚 a good guy and compassionate. But he understands his role and the importance of duty.鈥�

黑洞社区 understands his father flew out to Australia towards the end of last year to convince his only son 鈥� O鈥橰ourke also has two daughters 鈥� to listen to what he was proposing.

鈥淗e had to be persuaded,鈥� says a source familiar with the situation. 鈥淐athal is the only member of the family who is able to do it.

To come back into a COO role is looking like a succession to me. Ray has tried everyone else. It鈥檚 not a bad choice

鈥淚 think it will work. It鈥檚 a good solution for the family and the business, where he鈥檚 well respected and liked.鈥�

Another adds: 鈥淭o come back into a COO role is looking like a succession to me. Ray has tried everyone else. It鈥檚 not a bad choice.鈥�

His father鈥檚 difficulties in sorting out a succession have been well documented but a common theme has run through it all: his problem of letting go. 鈥淩ay has not been comfortable with any of this, bringing someone in from outside and letting them get on with it. He can鈥檛 do it. I really like him but I couldn鈥檛 work for him.鈥�

The ex-staffer remembers that, at one time, the three mostly likely to succeed Ray internally were Callum Tuckett, Andrew Jackson and Cathal.

Tuckett, who was at Laing when O鈥橰ourke bought it for 拢1 in 2002, is now running Multiplex, while Jackson, another one who was there at the time of the takeover, is COO of Mace鈥檚 construction business.

鈥淭ony Douglas should have been the one, in my opinion, of those who he did appoint,鈥� the former staffer adds. 鈥淏ut the crash happened and Ray got jumpy and didn鈥檛 stick with him.鈥�

Douglas, who still has connections to the industry via a non-executive role at Keltbray, left after two years as COO in 2009 and went on to run Etihad Airways before leaving last autumn to lead new Saudi airline RIA. All, then, clearly had something that others later saw but O鈥橰ourke, for whatever reason, did not.

Cathal, by all accounts, has done a successful job in Australia, where the firm beefed up its presence in 2006 after it paid 拢30m to Carillion for Barclay Mowlem. The Australia business of Mowlem came with Carillion鈥檚 purchase of that contractor at the end of 2005.

He moved the business from oil and gas jobs to a focus on infrastructure and defence work 鈥� although the firm has run into trouble on one contract and shipped more than 拢70m on the scheme in northern Australia. It is in dispute with its former partner on the project, Kawasaki Heavy Industries.

That blot aside, the opinion of Cathal from rivals is good. 鈥淗e鈥檚 a great guy,鈥� says one. 鈥淗e鈥檚 a forward-looking people person. A fantastic statesman and front man. I鈥檇 say he鈥檚 more of a chairman or CEO than a COO.鈥�

Another says: 鈥淚 suspect he will be a breath of fresh air and bring a new energy that many will be craving for. Top man. I do hope he can build the team he needs with him to complement the qualities he has.鈥�

The ex-staffer concurs. 鈥淗e鈥檚 brilliant with clients and is really easy to talk to. Not everyone can do that. He鈥檚 got a good sense of humour and is really progressive, very inclusive and diversity is very important to him.鈥�

One telling thing about Tuesday鈥檚 announcement was Cathal鈥檚 own words. 鈥淢y partner and I will be returning to the UK with our nine-month-old daughter,鈥� he said.

Not many corporate appointment stories include quotes like this. They tend to be much more business focused, certainly no insight into a private life.

Whether a float 鈥� remember that? 鈥� ever happens is now a matter of opinion. 鈥淚t looks like that is off the table,鈥� says one. The consensus is that, for a firm like Laing O鈥橰ourke to ever get a listing, it needs to build up a good track record on profit.

You never know. Ray often achieves things people cannot comprehend

O鈥橰ourke鈥檚 profit has yo-yoed in the past few years 鈥� hitting nearly 拢46m in 2020 but slumping to just 拢2.7m a couple of years later.

Another part of a successful float is having a succession plan in place. 鈥淗e [Ray] has got to get that sorted. The banks will demand it,鈥� the ex-staffer says.

Of a float, another adds: 鈥淵ou never know. Ray often achieves things people cannot comprehend.鈥�

Whether that plan is now in place, only time will tell. Still, this week鈥檚 news points to the fact that some sort of succession plan, by hook or by crook, is finally emerging.

Hindsight is a wonderful thing, of course, but, if it does work out with Cathal, the irony would not be lost on many: that Ray O鈥橰ourke鈥檚 eventual successor has been right under his nose all along.