10 June 2013 – update on UK construction business
The group has announced that it is to rationalise its UK construction business, closing its locations at Dartford, Doncaster and Rochdale. These locations accounted for around 8% of the UK regional business in terms of revenue. The group has also announced the appointment of Nick Pollard as CEO for the UK construction business – he has over 30 years’ experience within the infrastructure market and his appointment is seen as a good move for the group. Although the shares initially moved up after our recommendation at 233p, they have fallen back in the recent market decline and we maintain our recommendation of BUY.