Leiths

Statement by Ian Leith, Chairman

I recently announced that Simon Russell, our Chief Executive will be retiring at the end of 2017. I have considered the structure of the Group going forward to ensure that it is effectively managed into the next decade and beyond.

The family shareholders are committed to building the business for the next generation and whilst retaining the role of Chairman, I have appointed Phil Leith as our Deputy Chairman and Sam Leith, as Company Secretary.

I do not intend to replace Simon with another Chief Executive, but have created a Board of Directors from 1 October 12017, comprising Phil Leith, Sam Leith, Grant Milne, David Steel, Graeme Kinghorn and myself. Simon will also be a member of the Board as a Non-Executive Director.

Phil, reporting to myself, now has management responsibility for the Group and retains his responsibilities for Group Health and Safety, with Dave Bremner, our Group Health and Safety Director reporting to him.

Grant continues as Group Managing Director (Quarries) and retains his existing portfolio of responsibilities, namely Sales, Precast, Quarries, Concrete, Asphalt, the Laboratories, Plant, Procurement and Fleet and Distribution for Leiths, Ross and Joss.

David has been appointed Group Managing Director (Contracting), and heads up the existing Leiths Construction and Surfacing Division together with Executive responsibility for Markon, Lawrie Demolition and M&M Roadsurfacing. David also heads up the new Property Management and Development Division.

Graeme continues with his current responsibilities for Group Accounting and IT, and also takes on responsibility for the HR Department, with Pat Dunlop reporting to him.

Simon will continue to assist with the management of the Group until the end of 2018. As a Non-Executive Director, he will oversee and mentor the transition to the new structure. He will also head up our interests in Kishorn Port Ltd and the newly acquired Fyfe Glenrock.

This new structure builds on the considerable strengths of our existing Executive Team and represents a succession plan that will take the Group forward into an exciting future.