Morgan Sindell boss Smith is out after profit warning

Morgan Sindall's chief executive paid the price for a profit warning yesterday, as the builder's founder reclaimed the reins of the business.

John Morgan, who set up the company 35 years ago and still owns 10.4 per cent of the shares, was previously chief executive before handing over to Paul Smith in 2000 and becoming executive chairman. Mr Smith fell on his sword yesterday as Morgan Sindall blamed spending cuts, delayed investment decisions and cut-throat competition for tough trading conditions, which have deteriorated since June.

Profits will be "slightly below" previous expectations of £38m-£40m, Sindall said. The company is also closing some regional offices as part of plans to save £55m. Its shares fell 35.5p to 625p.