Barlow resigns as AusGroup MD

AusGroup managing director Laurie Barlow has resigned after the construction firm flagged that it would deliver a first-quarter net loss.

AusGroup said on Friday it had undertaken an operational restructure in order to protect the company's future profitability, in the wake of cost overruns from two contracts approaching completion and delays in the commencement of new contracts.

Mr Barlow's predecessor, Stuart Kenny, will again take the reins as AusGroup managing director.

"The board has investigated the causes of the Q1 anticipated loss and it is satisfied that all costs in respect of the contracts in question have been brought to account in Q1 and the group's overhead costs have now been substantially reduced in order to protect the group's future profitability," AusGroup said.

"The board is optimistic on the future opportunities for the group's businesses with specific focus on long-term maintenance contracts that are in the final stages of negotiation."

Mr Barlow was appointed to lead AusGroup in January last year after several years as managing director, minerals and industry, of AECOM Australia.

AusGroup said it was in discussions with its banks as its anticipated results had caused the company to breach technical covenants in its banking facility agreements.