Latto resigns from Balfour - ...as Clugston md goes

Bill Latto has resigned from Balfour Beatty two-and-a-half months after the contractor announced an extraordinary shake-up of the building business he headed. His departure means he will almost certainly have to step down as chairman of the influential National Contractors' Group of the BEC. The post, which he only took up in March, is reserved for serving employees of a top 50 contractor.

Until recently Latto was head of Balfour Beatty Building - the stand-alone building arm of Balfour Beatty, operating throughout England. But after two difficult years marked by losses and a 60% decline in turnover, the company effectively came to the end of the road in March.

At the annual results, parent group BICC announced that it was merging the business into Balfour Beatty Northern, its civils and building arm in Scotland, and renaming the two Balfour Beatty Construction.

BICC chairman Sir Robin Biggam commented at the time: 'The building business in England lost money. In Scotland they made a profit. We thought we'd give it to them to see if they could make money on the whole of the business.'

Under the new regime Latto was to report to Alistair Wivell, head of what Sir Robin termed 'a strong management team' at Balfour Beatty Northern.

Several directors have left Balfour Beatty Building in anticipation of a streamlining of the company's structure. At the end of February commercial director Frank Hill jumped ship to Tarmac, and marketing director Steve French left for Higgs and Hill. Former operations director Chris Marsden has just joined Wiltshier.

Other Balfour Beatty Building staff have stayed but in a reduced role.

The new company will be split into three regions: Scottish, under general manager Mike Peasland; Northern, under Ken Winter; and Southern under Harry Tarn.

John Samuel, former London director of Balfour Beatty Building, will report to Harry Tarn as a divisional manager. Also under Tarn will be Mike Archbold who joined as southern director of Balfour Beatty Building last June. Archbold will have a special brief for designated major porjects.

After the annual results, Balfour chief executive Peter Mason hinted at a more cautious approach, saying future building jobs were likely to be smaller and less glamorous.

A Balfour spokeswoman said that Latto had resigned to pursue other interests and will be leaving at the end of July. She was unable to say whether his interests were in construction, or if his decision had been affected by the reorganisation.

Latto will continue for the time being as chairman of the NCG, but BEC sources say he will step down when he leaves Balfour unless he is engaged by another major firm. Wimpey construction boss David Anderson is next in line for the job. However his already heavy workload with the Latham Review may prevent him taking up the post this early.



David Sterry, managing director of Clugston Construction since January 1991, has left the group. Chairman and chief executive Roy Butcher has taken over the role of managing director until a replacement for Sterry is found.

Sterry had been with Clugston Construction since 1977. A spokesman for the group would not comment on the reasons for his departure, saying it was by mutual agreement and was not related to the group's forthcoming results.

The Clugston group, a private firm, made œ1.365 million profit before tax in its last financial year on a œ93 million turnover. Clugston Construction contributed œ1.1 million post-interest operating profit on a œ68 million turnover.

'We have a strong balance sheet, low borrowings and have won œ13 million of work in the past two months,' the spokesman said.