Haydn Mursell, currently Group finance director, will take up the role of chief executive with effect from 1 July 2014. The company said that a full executive search will be conducted for a new Group finance director to succeed Haydn.

Phil White, chairman, commented:

"I would like to express our thanks to Paul for his long- serving commitment to Kier. He joined Kier in 1983 and his contribution over 30 years with the Group has been considerable, most recently guiding the acquisition and integration of May Gurney. After a handover period, Paul will leave with our very best wishes for the future."

"I am delighted to announce the appointment of Haydn Mursell as chief executive of Kier. Haydn has done an excellent job as finance director since joining the Group in 2010 and has demonstrated that he is the right person to take over from Paul. We are looking forward to working with Haydn."

Paul Sheffield, chief executive, commented:

"Since I joined Kier in 1983, the Group has grown enormously, both in scale and the services it offers. I'm very proud of what we have accomplished, but feel it is now the right time to transition the leadership of the Group. I know that Haydn will do an excellent job leading Kier in the next phase of its development and I wish him every success in his new role."

Kier said in the press release that trading remains in line with the board's expectations and the group's interim results will be announced on 27 February 2014.