South West property and retrofit firm faces collapse

Connaught is one of UK’s leading property service providers and has been involved in a number of low carbon retrofit projects, but it was forced to suspend it shares earlier on Tuesday as it emerged the company was slipping further into trouble. Its share price had tumbled by 90 per cent since June, when it warned of contract deferrals and said it had breached lending convenants.

Unprofitable contracts and cutbacks in public sector funding were being blamed for the company’s demise. Before calling in administrators KPMG, the company issued a statement, saying: "The ability to provide an adequate solution to the funding issues the group faces has become increasingly uncertain."

Connaught, which is headquartered in Exeter and employs 10,000 people, started out as a concrete repair specialist in Sidmouth, Devon, in 1982. It saw turnover soar in recent years to £660 million and was involved in green makeover programmes, such as Retrofit for the Future, a competition funded by the Government-backed Technology Strategy Board, which provides technology-enabled innovation in house retrofits. It also operates environmental services, including grounds maintenance, waste maintenance and forestry services.

According to the Financial Times the company's environmental services are one division that may avoid be sold off. The newspaper also said the collapse meant thousands of private investors faced the prospect of being wiped out after picking up the stock on the cheap after professional investors bailed out.

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