Now, this one was just awarded the Aim company of the year. Its a bit likeMears but it has a large GAS SERVICE section and the profits from this outfit would appear to be less healthy than from its Public Service arm. Does anyone have any knowledge of this company which is not cheap BUT could be on its way to making a lot more mazuma.

Been through the news items for the past year and can see nothing to justify the fall. In fact, directors were buying up at around 315p after the first drop.

Umm .. the name of Worthington Nichols springs to mind when the CEO snapped-up shares at 110p which pushed-up the sp temporarily.

... and we all know what happened to them (and him for that matter!)

try this from 30 March.....

Shares in Connaught drop 6 percent, the biggest faller on the FTSE 250, after Charles Stanley Securities cuts its recommendation on the support services firm to Sell from Buy and reduces its 2011 earnings forecast by 20 percent.

"The CEO has departed, the shares have fallen sharply, a major contract is under an injunction, the outlook for public spending has deteriorated further, and we have reconsidered our view on the group's amortisation policy," writes analyst Matthew Earl in a note.

He says he sees more attractive opportunities elsewhere within the sector, notably Mears and May Gurney .

Yes I was just reading it on Selftrades site. In fact, from 310p the drop has been 20% which does look overdone.

Looks another example of where accounting practices can massage profit figures. I don't hold either, but it is much harder to massage the cash numbers and a quick look at the Cash Flow Statements for CNT and Mears for their last year's accounts shows big difference in cash generation. No prizes for which is stronger.

Broker note from Brewin Dolphin:
"Connaught has confirmed that a settlement has been reached which has allowed
it to begin work on a 5 year, 125m integrated services contract with Norwich
County Council. Work has begun under a short term contract with the permanent
contract due to begin on 8th April.
The settlement comes following an injunction brought by the incumbent provider and this news should draw a line under any ongoing uncertainty in this regard (and the distraction it has caused).
The statement also comments that trading continues to be in line with expectations. In this context, in our view, the recent share price weakness looks overdone and we expect upbeat Interims from Connaught (27th April) which should help rebuild confidence in the long term story."

It looked oversold to me so I took the gamble before Easter which fortunately has paid off.

I'm now out.

one day i'll actually manage to buy at the bottom instead of the top, but at least i am now pretty much b/e again, and i guess there's potentially quite a lot of upside

lol... your human after all cynic....join the club..

Bb LoL!
yep being human is "i wish i could get out of this at break even" and when our wish comes true we dont do it. i'm human too.done it loads of times.
regards
jkd

Update on Trading

TIDMCNT

RNS Number : 2866O
Connaught PLC
25 June 2010

?
Update on trading


Connaught has carried out a detailed analysis of its business in the lead up to
and following the Emergency Budget. The company has identified 31 contracts
within its Social Housing division where a proportion of the value relating to
capital expenditure has been deferred. This will impact revenue by around
GBP80m and EBITA by GBP13m in the current financial year. If this were to
continue we anticipate a reduction of revenue by GBP120m and EBITA by GBP16m for
financial year 2011. As a result we expect a one-off impact to our cash
conversion rate, reducing to around 40% this financial year.

The medium-term outlook for the business remains strong. As previously
indicated the company is undertaking a cost reduction programme. This is
expected to yield savings of at least GBP25m for financial year 2012. We have a
record bid pipeline of GBP5.3bn reflecting the trend towards larger, longer-term
contracts as our customers seek to address their budgetary restrictions.
Connaught is ideally placed to meet the emerging requirements of this market

Header needs adjusting, these have plummeted today, just goes to show with CNT, BP and other 'safe/boring' stocks, they are not oneway tickets.
2517

Buy order in around 180 for Monday :)

all companies dependant on goverment contracts (hand outs) are going to be adversely affected by the cutback in expenditure due to our huge deficit, thanks to brown and his cronies.

Shares in Connaught slumped after the social housing firm lowered its estimates for this year and next year because of the emergency budget.

The group said it has identified 31 contracts within its social housing division where a proportion of the value relating to capital expenditure has been deferred.

Shares in the company fell by nearly 30% after the announcement, which came not long before trading closed.

Connaught's revenues for this year will be around 80m lower and underlying profit will be down 13m, it said today. If the trend continues, Connaught expects revenues to reduce 120m for financial year 2011 and underlying profits down 16m.

As a result we expect a one-off impact to our cash conversion rate, reducing to around 40% this financial year, Connaught said.

The group added that the medium-term outlook for the business remains strong.

Broker KBC Peel Hunt said it anticipates moving its 2010 pre-tax profits estimate from 55 to 40m following the shock announcement.

glad i'm out of these, thought cannot remember if it was a small profit or loss at the time

It's falling off the edge.

strewth!

Any idea where the 'oversold' level is? 180p? Can't decide where the bounce will be.

Currently in auction for the 3rd time down 32.2%