Dalgleish steps down amid RCR cost blowout

RCR Tomlinson managing director Paul Dalgleish has stepped down from his role as the company investigates cost overruns at one of its projects.

Mr Dalgleish, who has led Sydney-based RCR for the past decade, will be replaced by non-executive director Bruce James as interim chief executive from today.

The company has also extended its voluntary suspension pending the release of details of the expected financial impact of cost overruns at an undisclosed project.

“The company confirms that the cost overruns referred to in the announcement on August 1 2018 occurred at a single project, nearing completion,” RCR said in a statement to the ASX.

“The board is treating this matter with utmost seriousness and approaching its investigation as a matter of priority.

“The investigation is being undertaken by a group comprising members of the board and a subset of the senior management team, to ensure that the company remains focused on the operations of the business and on capitalising on its growth opportunities.”

Mr Dalgleish’s replacement Mr James has previously served as chief executive of contractor Transfield Services.

Mr James will serve as interim chief executive until a replacement for Mr Dalgleish is found.

Shares in RCR last changed hands at $2.80 each.