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Artemis' Steer boosted from Connaught collapse
by Matthew Goodburn on Sep 08, 2010 at 00:01
'The banks have now refused to supply it with any more credit so it has effectively gone bust,' he added.
Shares in Connaught were suspended last night with some 139 million still in circulation.
In a statement to the Stock Exchange, Connaught said it had been 'continuing discussions with its lenders and other sources of finance with the objective of securing additional funding and a restructuring of the group's financing for the longer term.'
In June the group had warned that it would see its revenues fall by some £80 million in this year alone and that it would make a loss for the year, while it also expected measures in the Government's emergency budget on 22 June would impact on 31 of its social housing contracts.
A month later its shares fell by almost 70% after the FSA ordered a probe into its finances when it was accused of failing to disclose 'potentially price sensitive information to the market in time'.
Some 10,000 jobs are now at risk.
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4 comments so far. Why not have your say?
brian hammond
Sep 08, 2010 at 10:05
All at the expense of 10,000 + jobs, fantastic. It is a pity that Artemis did not provide accountancy advice and financial assistance to turn things round at Connaught, then I might have been singing its' praises !
I wonder who is betting on the next horse to lose at Sandown Park !
report thisAndrew Moore
Sep 08, 2010 at 12:52
Well spotted Tim.
I cannot conceive that there are no entrepreneurs in the 10,000 who could not rebuild this business. Seems like a great opportunity to me.
report thisPete Davis
Sep 08, 2010 at 14:14
Well done Tim, you have not lost your touch since the New Star days!! You made my clients a lot of money then. Keep up the good work.
report thisPauline Walton
Sep 10, 2010 at 17:57
Tim Steer's searching questions on Connaught accounts were published online on 15 December 2009 for anyone to see. Any company signing up to millions of pounds could have come to the same conclusions from the accounts. I am one of those Norwich City Council leaseholder who felt that Norwich's approach to procurement was reckless. The Council appointed Connaught on 10 February 2010 and Morrison obtained its injunction on 22 February.
Leaseholders warned the Council in March last year that it was in no position to successfully appoint a contractor by 1 April 2010. We were ignored and our worst fears are being realised. When will those who pay be heard?
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