David Fison replaced as head of Skanska UK

Skanska UK has replaced its chief executive David Fison because of problems in the UK PPP division - write-downs now run to £48m this year.

The Swedish parent decided it needed to make a change at the top to get to grips with project processes and procedures.

Fison joined the group in 1998 and stepped up to the top post as chief executive of Skanska UK following the departure of Keith Clarke in 2001.

Fison’s post has been handed to Mats Williamson.

Williamson’s previous positions within Skanska include that of project executive on the Oresund Bridge between Denmark and Sweden.

During May and June of this year, Skanska conducted a second review of Skanska UK’s construction projects in the PPP sector and this resulted in further project write-downs. The group decided that it also showed that Skanska UK’s internal processes and procedures relating to PPP projects needed to be improved.

Johan Karlstrom, chief operating officer of the Skanska group, said: “The results in these projects are unsatisfactory. We will therefore change our processes and procedures within Skanska UK and change our way of working in these projects.

“I’m convinced that Mats is the right person to lead the development of Skanska UK.

“Skanska UK will continue to be an important part of Skanska. We see good potential growth in the UK market and will continue to develop out PPP business in the UK. We believe that PPP offers interesting business opportunities for Skanska.”

Skanska group’s latest interim results (six months to 30 June 2008) show turnover higher at £5.7bn (comparable figure in the previous year: £5.3bn) while the profit fell to £163m (previous year’s figure: £136m).

Skanska’s construction division contributed £5.5bn of the group’s total turnover.

The problem was that operating income from construction was down, at £117m, well below the £150m achieved in the first six months of 2007.

During the first quarter of 2008, Skanska undertook project write-downs in the UK running to £28m. A second review in the second quarter established that another £20m hit was needed in order to get the PPP operation back on an even keel.

The second write-down was “mainly attributable to one major project” said Skanska.