Connaught heading for administration

Troubled social housing maintenance company Connaught is likely to appoint accountancy firm KPMG as adminstrators today.
The company, which provides social housing repair and maintenance services to local authorities, has a number of builders merchants amongst its suppliers and was trying to secure short-term funding to get it out of difficulties.

Trading in shares was suspended this morning and the funding has not been forthcoming.

Connaught employs 10,000 people, and issued a profit warning in June saying public spending cuts would see its revenues fall by £80m this year.

In July it said it was set to breach its banking covenants.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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