Kier appoints Andrew Davies as new CEO

Davies was CEO of construction and property services company Wates from 2014 to 2018. In October 2017, he was lined up to become CEO of Carillion but the company collapsed before he took up the role.

Prior to leading Wates, Davies spent more than 28 years with BAE Systems, undertaking a range of senior operational and corporate roles, including group strategy director and managing director of the maritime division. He is also a non-executive director of Chemring.

Executive chairman Philip Cox said: "Andrew has a strong track record of business leadership and his operational experience across a number of sectors, combined with his strategic approach, make him an excellent fit for Kier. On behalf of the board, I would like to welcome Andrew to the group and I look forward to working with him."

Davies said: "I am delighted to be joining Kier as chief executive. Kier has established market-leading positions through developing long-term client relationships and delivering excellent client service. I look forward to leading Kier in consolidating those positions and to bringing a renewed focus on simplifying the group, improving cashflow generation and reducing net debt, whilst maintaining the group's disciplined approach to risk management."

At 1000 GMT, the shares were up 1.9% to 493.24p.

Broker Peel Hunt said: "We view this appointment positively, given the wide ranging and highly relevant experience."