* Says will miss 2012 trading forecast
* Announces board reshuffle, operational changes
* Shares down 5.4 percent
By Stephen Mangan
LONDON, Nov 6 British construction group Morgan
Sindall said it would miss its full-year trading
forecast because of tough markets and that chief executive Paul
Smith had resigned.
Executive chairman John Morgan will return to the position
of CEO as part of a boardroom reshuffle that will see senior
independent director Adrian Martin become non-executive
Morgan Sindall also said on Tuesday it was facing a 10
million pound ($16 million) restructuring charge this year,
including office closures and a redundancy programme as it aims
to make 55 million pounds of annualised savings over the
three-year period to the end of 2012.
Market deterioration had hit the short-term outlook into
2013, and the company is continuing to be highly selective when
bidding for new work, it said.
Morgan was CEO from 1994-2000 before becoming executive
chairman in 2000 and handing over to Paul Smith.
Liberum Capital analyst William Shirley cut his estimate for
2012 earnings per share by 4 percent to reflect weaker than
expected affordable housing profit.
He had cut his 2013 forecast last month by 7 percent and
expected others to follow, which would bring consensus down
about 10 percent towards his estimate.
Morgan Sindall operates through five divisions of
construction and infrastructure, affordable housing, fit out,
urban regeneration and investments.
Its construction business is being reorganised to focus
delivery through regional hub offices, with a number of smaller
regional offices being closed.
Morgan Sindall shares were down 5.4 percent at 625.75 pence
at 1320 GMT.