Leo Quinn, whose departure as Balfour Beatty chief executive was announced today, has had a major impact on transforming his firm \u2013 many would argue on the construction industry in general.<\/p>\n
In a LinkedIn post<\/a> today, the man who turned round the struggling firm called his role \u201cthe best job in the best industry\u201d.<\/p>\n Quinn said: \u201cTogether, we\u2019ve connected communities, painted skylines, and developed great leaders. We\u2019ve transformed Balfour Beatty into a market leader, and I like to think that along the way, we\u2019ve helped to transform the infrastructure and construction industry into the credible and essential economic driver that it is today.\u201d<\/p>\n The future for Quinn remains uncertain. Tellingly, the Balfour Beatty announcement did not use the word \u201cretirement\u201d.<\/p>\n He will remain in a strategic advisory role to help his successor Philip Hoare get a grip on the business.<\/p>\n That is no small task, and the process is expected to last months.<\/p>\n When he is finally able to step away, Quinn will undoubtedly want a break. But whether that will mark the end of Leo Quinn\u2019s involvement in the firm he led for a decade remains an open question.<\/p>\n Here is the timeline of Leo Quinn\u2019s time at the helm of what is now the biggest UK contractor:<\/p>\n October 2014 February 2015 March 2017<\/strong> December 2017 March 2018 September 2019<\/strong> March 2020<\/strong> June 2020<\/strong> August 2020<\/strong> March 2021<\/strong> May 2021<\/strong>
\n<\/strong>Balfour Beatty appoints QinetiQ chief executive Quinn<\/a> as group chief executive, succeeding Andrew McNaughton. Hailed as a \u201cturnaround specialist\u201d, Quinn joins on a basic salary of \u00a3800,000, in the wake of five profit warnings issued by the firm during the previous two years. The appointment marks Quinn\u2019s return to a company where he started his career in 1979 as a civil engineer in the firm\u2019s UK construction services business. In a letter to the firm\u2019s staff, Quinn promises \u201cbold\u201d leadership and \u201cbrave decisions\u201d to restore the contractor to its \u201crightful place on the global stage\u201d.<\/p>\n
\n<\/strong>Balfour Beatty announces its Build to Last programme focusing on four areas, including the strengthening of financial control and the introduction of a more disciplined approach to project bidding and risk review processes. The move comes after KPMG says the firm\u2019s bidding process is often \u201cat very low margins with optimistic assumptions around cost, programme and procurement savings, and inadequate provisions for risk\u201d. At the same time of the Build to Last announcement, Balfour Beatty issues a further \u00a370m profit warning.<\/p>\n
\nA month after selling its stake in its Middle East joint ventures, Balfour Beatty marches back into the black<\/a>, as it posts pre-tax profit of \u00a38m in the year to 31 December 2016. The previous year, the firm had reported a pre-tax loss of \u00a3199m. Hailing the Build to Last programme, Quinn says: \u201cThe transformation of Balfour Beatty is well under way. We have upgraded leadership, processes and controls while continuing to invest in the group\u2019s unique strengths.\u201d<\/p>\n
\n<\/strong>A paper released by the contractor, 25% by 2025: Streamlined construction \u2013 seven steps to offsite and modular building<\/em>,<\/a> sets out the firm\u2019s commitment to reduce onsite working by a quarter by 2025 and proposes how government can drive uptake of the technologies.<\/p>\n
\n<\/strong>Balfour Beatty reports its best results in five years with a pre-tax profit of \u00a3117m in 2017 \u2013 a huge leap from the \u00a310m in 2016 and the highest level since the \u00a3147m reported in 2012. The company\u2019s pre-tax margin hit 1.7 per cent on a turnover of \u00a36.92bn. Speaking about the collapse of rival Carillion on the BBC\u2019s Today<\/em> programme, Quinn says: \u201cRemoving a major competitor from the market who was underperforming is always helpful.\u201d Quinn tells Construction News<\/em><\/a> that his firm has the industry\u2019s strongest balance sheet, thanks to its focus on cash generation.<\/p>\n
\nBalfour Beatty\u2019s joint venture with Vinci is awarded the construction management contract to build the \u00a31bn HS2 station at Old Oak Common<\/a>. A year later, the JV is given notice to proceed on two main design and build jobs on HS2 worth \u00a35bn. The civil engineering work involves extensive earthworks, ground engineering, viaducts and tunnels along a 90km stretch of the line.<\/p>\n
\nCovid hits. Quinn and the rest of Balfour Beatty\u2019s leadership team take a 20 per cent pay cut<\/a> in response to the crisis. Balfour Beatty announces its sites will remain operational and it will implement the standard operating procedures. The news comes a week after the firm announces plans to carry out a \u00a350m share buyback plan during the year.<\/p>\n
\nBalfour Beatty survives a shareholder revolt over executive pay<\/a>. A resolution to approve its directors\u2019 remuneration report was opposed by just over 17 per cent of the shareholder votes at a meeting on the report. The report details chief executive Leo Quinn\u2019s award of \u00a32.9m in 2019 and chief financial officer Philip Harrison\u2019s \u00a31.3m package.<\/p>\n
\nBalfour Beatty reveals a \u00a326m pre-tax loss in the first half of 2020, largely due to problems in the UK business caused by Covid. Quinn says: \u201cThe financial impacts of Covid are unavoidable; but they will pass. Since the start of Build to Last, our balance sheet, order book and expert capability are at record levels.\u201d<\/p>\n
\nThe company announces a U-turn on its initial decision to keep hold of government furlough cash. The group will now repay \u00a319m claimed through the Coronavirus Job Retention Scheme. Annual results show an annual pre-tax profit for 2020, bouncing back from a \u00a326m loss in the first half of the year due to the pandemic.<\/p>\n
\nBalfour Beatty announces plans to leave the Irish market<\/a>, where it works on gas projects through a joint venture.<\/p>\n