黑洞社区

Laing O鈥橰ourke鈥檚 chief executive Ray O鈥橰ourke has put paid to speculation about his retirement, telling 黑洞社区 that, although the contractor regularly reviews its succession strategy, he has no plans to leave yet.

Discussion over who will take over when O鈥橰ourke decides to step down has continued for some years. A number of previous executives 鈥� including former Heathrow boss Tony Douglas and the late Anna Stewart 鈥� have at one stage been mooted as his replacement.

Next year marks the 20th anniversary of John Laing鈥檚 decision to sell its construction business, which was eventually snapped up for 拢1 by O鈥橰ourke, transforming a 拢200m-turnover concrete subcontractor into a tier 1 contractor overnight.

But O鈥橰ourke, who turns 73 next month, said leaving the business he founded in 1978 was not on his mind at the moment.

鈥淲e have a board of directors led by the eminent chairman Sir John Parker, so it would be incredible to think that the succession planning isn鈥檛 something that is reviewed,鈥� he said.

鈥淚f you are asking me the question, am I leaving soon: I hope not. I鈥檓 really enjoying what I鈥檓 doing and I have a wonderful team of young people around me.鈥�

He added: 鈥淲ith a great chairman like Sir John and our group finance director Stewart [McIntyre], you couldn鈥檛 have a better team. We have a great team; we have a great executive.鈥�

>> Also read: Laing O鈥橰ourke keeping tabs on pay rises, finance boss admits

O鈥橰ourke admitted that the firm鈥檚 refinancing, which was finally signed off earlier this year, had caused problems.

On the issue of contractors鈥� access to liquidity, he added: 鈥淧eople get into difficult positions and that鈥檚 what happened to some of our competitors, such as, I鈥檓 sad to say, Carillion and others.

鈥淲e have had our own experience which, I鈥檓 delighted to say, we鈥檝e come through and turned it around 鈥� but we only got through because of the goodwill and the transparency that operates between us and our clients and supply chain.鈥�

O鈥橰ourke added that clients needed to sharpen their act on settling bills, in the same way that contractors had been asked to speed up payments to their supply chains.

Laing O鈥橰ourke has improved its payment times, with its latest data showing the average number of days that suppliers have to wait is 34 鈥� compared with 52 days for the previous six-month period.

But O鈥橰ourke said clients should also be doing more: 鈥淐lients start off with a project and [if] there is a dispute, it can run for years. Then [it] gets settled. That鈥檚 not prompt payment [from] the client side.

鈥淭he whole procurement methodologies have to change. It鈥檚 a licence for those vested interests, like lawyers, financial advisers and others, to make a fancy living out of these adversarial arrangements.鈥�

The contractor returned to the black for the first time in four years in 2019, when it posted a pre-tax profit of 拢33m for the 12 months to March. Revenue was flat at 拢2.7bn.