黑洞社区

The man brought in to take over from Ray O鈥橰ourke as boss of Laing O鈥橰ourke is leaving the business after less than a year at the firm.

The country鈥檚 biggest private contractor confirmed the news this morning as it released its latest annual results which show a 拢76m hit at its Australia business dragged group profit down to less than 拢3m on turnover of 拢3bn.

But the figures have been overshadowed by the announcement that Seamus French, who only began work at the business at the start of 2022, and was supposed to take over from O鈥橰ourke as chief executive last month, will now be gone by Christmas.

A Laing O鈥橰ourke spokesperson said the company will 鈥渞evert to the structure that was in place last year and Ray will work closely with the leadership teams in both [Europe and Australia] hubs鈥�.

The firm said that O鈥橰ourke will 鈥渃ontinue as Group CEO and Europe MD for the next two financial years鈥� meaning the contractor no longer has an obvious succession plan for a man who will be 78 by the end of its 2024 financial year.

Under a plan spelt out last November, when French was first announced as O鈥橰ourke鈥檚 replacement, O鈥橰ourke was due to step down at the end of this summer and join younger brother Des as a deputy chairman.

Last month, the company told 黑洞社区 French would still be taking over from O鈥橰ourke saying that a public unveiling was on the cards but 鈥渄etails on handover鈥�along with introductory interviews for Seamus haven鈥檛 been decided on鈥�.

>> Also read: It鈥檚 hard to let go: Laing O鈥橰ourke and the problem with succession

French, who has been a non-executive at Laing O鈥橰ourke since May 2020, was appointed managing director of its 拢1.8bn turnover Europe hub, while being made chief executive-designate as well.

At the time of last November鈥檚 announcement, Laing O鈥橰ourke said Ray O鈥橰ourke would 鈥渇ocus on innovation, people development and major clients鈥�.

But explaining the U-turn, the firm鈥檚 chairman Sir John Parker said today: 鈥淪ince signing off the Group accounts for FY22, Seamus and Ray have been focussed on the challenges of completing a CEO leadership transition during a period of significant economic turbulence here in the UK. We have agreed to 鈥榟old formation鈥� and that Seamus will step down from his transitional role as Europe managing director with Ray remaining as CEO.鈥�

French, who turned 60 in May and joined after 14 years at mining giant Anglo American where he was in charge of the firm鈥檚 bulk commodities and other materials division, said: 鈥淚 have thrown myself into this role and found the industry tough but exciting and have grown extremely fond of the 鈥榗an-do鈥� environment and personal engagement at Laing O鈥橰ourke.

鈥淗owever, my experience tells me it is better to allow the established team to flex and respond to the market at this time. I am available to assist the business in any way I can and I am grateful to the people of Laing O鈥橰ourke for their support during my time with the company.鈥�

In a statement, O鈥橰ourke called French 鈥渁 genuine friend鈥� and said he had championed the firm鈥檚 efforts to 鈥渕ake our industry more respected, rewarded, sustainable and inclusive鈥�.

Nonetheless, French is the latest in a string of a string of would-be replacements for O鈥橰ourke who have come and gone since he bought Laing for 拢1 in 2001, notably Tony Douglas, the former boss of Heathrow Airport, now running Etihad Airways, who went in 2009, and Paul Sheffield, a former chief executive of Kier, who left O鈥橰ourke after three years in 2017. Former chief executive Anna Stewart stepped down at the end of 2015 due to ill health and passed away five years ago.

It was widely assumed that French had been brought in to help ready the firm for a stock market listing after Ray O鈥橰ourke told the Financial Times last September: 鈥淲e will float the company in a few years鈥� time. By 2024 we will be in good shape.鈥�

Commenting on French鈥檚 departure, one industry source questioned whether the firm would ever float and added: 鈥淩ay has some sensible people on his board who must be tearing their hair out. I think a float is years away, if it happens at all. I鈥檓 not sure the market is looking for another listed contractor.鈥�

Once touted as a successor to his father, Ray O鈥橰ourke鈥檚 son, Cathal, left his position as managing director of its 拢1.1bn turnover Australia division this spring but has since been appointed a non-executive of the business and succeeds him as chair of the division next month. The Australian business鈥檚 managing director Rebecca Hanley will also step up to the group board next month.