Carillion blood-letting sees five more directors axed

Carillion's finance director has left the troubled outsourcing company with immediate effect, with three other directors departing at the end of the month.

Zafar Khan, group finance director, was promoted from financial controller just over a year ago but he has had his hands full as chief executive Richard Howson resigned this summer as the construction support services company issued a huge profit warning, suspended its dividend and promised to carry out a strategic review as cash flows dwindled due to a dearth of new contracts.

Taking Khan's place is Emma Mercer, promoted with immediate effect from her role as finance director of the UK construction business prior. She joined the group in 2008 as CFO and senior vice president of Carillion Canada.

Carillion, which will lose its FTSE 250 status later this month, has appointed Lee Watson as 'chief transformation officer' on immediate secondment from Ernst & Young, where he is a partner specialising in transformations and restructurings for UK companies.

Chief operating officer Richard Howson will also be relieved of his duties and will be replaced at the start of next month by Andy Jones, currently president and chief executive of Carillion Canada.

Furthermore, the managing directors of the construction services and services arms, Adam Green and Nigel Taylor, will also be leaving the company on 30 September.

The fifth departure in this round of blood-letting will be strategy director Shaun Carter, who will leave by the end of the year.