Connaught shares sink below 10p

Grant Prior 15 years ago
Share

Connaught chairman Sir Roy Gardner is fighting to save the social housing maintenance specialist as it edges closer to falling into the hands of its lenders.

Connaught was forced to issue its second profit warning in a month on Friday which saw its share price crash 46.5%.

And the sell-off continued on Monday morning as another 35% was wiped-off the firm’s value in early trading as Connaught’s share price tanked to a low of 9.2p.

The price was down from 320p in June before the string of profit warnings, management shake-ups and cuts in social housing spending.

City traders were so keen to sell Connaught shares that deals were suspended on several occasions by  market circuit-breakers which give brokers breathing space between trades.

Sir Roy now has a huge battle on his hands to keep the company out of the hands of its lenders via a debt-for-equity swap which would see the banks seize control.

Sir Roy also took the opportunity to issue a rallying call to Connuaght’s 10,000 employees and shell-shocked shareholders.

He said: “This is a business worth fighting for and my new team and I ask for your continued support for our efforts to rebuild Connaught.

“Further to my appointment as Chairman in May and my establishing a series of independent reports on the business, it is clear we face challenges in turning this Group around, but I remain both confident that this can be achieved and committed to seeing the process through.

“My focus, and that of the new executive team, will be to continue the plans for the refinancing of the Company for the benefit of all our stakeholders who have shown loyalty to Connaught over the years.  The business remains committed to delivering excellent quality and service for our clients.”

Latest news

Brookfield gets green light for latest City office scheme

Retrofit-first approach will retain 70% of the original structure at 1 Moor Lane
3 hours ago

Ex-Lendlease boss seals £24bn Crown Estate mega sites JV

Crown Estate/Lendlease alliance to build out at Euston, Silvertown and Thamesmead sites
9 hours ago

Knauf commits £170m to build Deeside insulation plant

Work to start next year at former Shotton steelworks site
7 hours ago

Construction trade bodies vote to keep training levy

CITB gets green light to collect contractor's cash for another three years
7 hours ago

McLaren to build 2,400-bed worker campus at Sizewell C

Worker camp to raise the bar on site accommodation standards
10 hours ago

Soaring costs and work drought sunk historic scaffolding firm

Rodells had been in business since 1898
10 hours ago

Clarion set to tender £79m Kirkstall Road Phase 2

Bidding to start for Dyecoats blocks 1 and 3 after Graham bagged phase 1
11 hours ago

TfL seeks firms for £700m civils and station framework

Works include £80m South Kensington and £60m Elephant & Castle station upgrades
11 hours ago

Early market talks on £2.5bn Yorkshire mass transit plan

Supplier talks open for West Yorkshire’s biggest ever transport scheme
10 hours ago

Robertson starts Redcar town centre revamp

Culture and Leisure Anchor Attraction will enhance Redcar’s Esplanade
11 hours ago

Alun Griffiths set to rescue firm he sold for £36m

Tarmac to hand back Welsh civils contractor after five years of losses
3 days ago

Landsec to pump £2bn into new house building drive

Developer to build 6,000 homes as it sells offices to fund new schemes
3 days ago

Severfield to start steel on McAlpine car battery site

Specialist to start on £4bn site next month after steel package signed-off
3 days ago

Construction Manager of the Year crowned

Jason Hunt of Willmott Dixon wins for work on Bristol concert hall
3 days ago

Tide gets go-ahead for over 1,000-home London scheme

Volumetric expert gains planning for co-living homes scheme in Southwark
4 days ago

Vital Energi lands £250m Gatwick decarbonisation deal

Five-year programme to switch airport away from gas heating
3 days ago

Construction output flickers into life in March

First quarter activity flatlines after slow start to year
4 days ago

Skanska lifts margin to 4.3% as profit hits £78m

Infrastructure and FM drive near-tripling of profits
5 days ago

Mayor backs 46-storey student tower at Canary Wharf

City Hall overturns Tower Hamlets council rejection of 912-bed scheme
5 days ago

Plans go in for 100 acre Port of Tilbury expansion

Construction could start next year on site the size of 70 football pitches
4 days ago

Inland Homes creditors face £38m hit

Administrator confirms no cash for supply chain
5 days ago

Durkan dogged by legacy jobs despite return to trading profit

Durkan scales down new homes contracting to focus on retrofit work
5 days ago

Munnelly founder hands over CEO role to son

Paul David Munnelly steps up to CEO as father becomes chairman
4 days ago

Barking build to rent towers face rebuild

Major remedial work needed on resi scheme built by Shapoorji Pallonji UK Ltd
5 days ago

London new home starts plunge 38% as Building Safety Act bites

Capital only region to see Q1 fall in NHBC new home registrations
6 days ago

Sureserve swoops for rival compliance outfit Kinovo in £56m deal

Recommended cash offer will take AIM listed contractor private
5 days ago

Crown Golf tees up £1bn plan to build 3,000 homes on course land

Major housing plan for spare land on eight UK courses
5 days ago

Green light for Peterborough Station Quarter £48m revamp

First phase to start before the end of the year
5 days ago

Morgan Sindall starts £38m Caerphilly leisure hub

New swimming pool and health suite forms part of town regeneration plan
5 days ago

145 firms win places on £800m building safety framework

Fusion21 confirms latest winners: Full list
6 days ago

Contractor services