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.

looks like a "dead parrot" reportedly BARC has sold its exposure for 37% of its face value.

i saw that and hadn't realised what a (relatively) small value i had shorted ...... only obvious danger is if some dumb clutz decided to buy the company

cynic with all that debt and a negative NAV you would have to be crazy.

like a dumb clutz lol!
i may well double up my short in the morning, or at least that is the temptation even if done as a phone order with its obvious dangers

I think the sp is seriously heading south but I can't see this company going bust. I think it will ultimately find the finance.

Sir Roy is causing a big slide by his statement today and he sounds like Cheryl Cole in the last paragraph...




Connaught plc
("Connaught" or the "Company")

Review of Trading and Financial Performance

In its announcements of 26th and 29th July, 2010, Connaught said that it was undertaking a review of its current year trading performance and the implications this may have on its full year financial performance.

This now indicates that the Company will record a material loss at an EBITA level (including current year exceptionals) and will be no better than breakeven at an adjusted EBITA level for the current financial year to 31st August, 2010. At the same time we are reviewing the segmental presentation of the business.

In addition, the Company also anticipates making provision for future losses on current contracts in its results for the financial year ending 31st August, 2010.

In the context of its reviews, the Company also anticipates that it will make significant write-downs in respect of the carrying value of assets as at 31st August, 2009, the previous year end. This is before taking account of the impact of the ongoing assessment into the accounting policy for mobilisation costs.

The Company's review is continuing and further details will be announced in the preliminary results for the current financial year.

Sir Roy Gardner said:
"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.

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

was short a lump - in share terms - but only added 50% to that position this morning as was travelling .... what a shame, but that's just greed talking!

cynic well done they are looking good for adminisration.

thanks pal ... it's nice to make a good call sometimes

Not my type of punt. I dont like backing failurebut it looked a nailed on shortsingle figures are odds on nowpunters had plenty of time to get out in the 30s.no excuses left?

it's a WONDERFUL stock if you're short

tabasco/cynic - clubman is looking for you here.

???????? - where did that little pearl come from??????

banked this morning's foray purely out of prudence ...... shall look again on monday

Connaught took over the contract for city maintenance in Norwich from 'City works'. If you guys don't quit shorting this stock we ain't gonna get our bins emptied!

Connaught faces further losses.


The prospect of lenders seizing control of Connaught edged closer on Friday after the stricken property services group warned it would write down the value of its assets and make provisions for future losses on existing contracts.

The FTSE 250 company, which is chaired by Sir Roy Gardner and whose accounts are being independently audited by Deloitte, did not provide an explanation for the moves.

It comes four days after Barclays, a member of Connaughts syndicate of banks, sold its entire loan exposure of 19m for about 37 per cent of face value. Barclays look like theyve played a blinder, said Matthew Earl, Matrix analyst.

Lloyds Banking Group is also considering offloading its debt although no decision has yet been taken. A person close to the Bank of Ireland said that at present it had no plans to sell its exposure. Other members of the syndicate, which is led by Royal Bank of Scotland, include KBC, the Belgian bank, and Swedens Handelsbanken.

People close to the situation said that Connaughts mounting difficulties would make a rights issue difficult to execute and that a debt-for-equity swap was now the least worst outcome for shareholders.

Shares in Connaught, which had already dropped by about 90 per cent since a profit warning in June, lost almost half of their remaining value on Friday. They closed down 13.5p at 15.5p, giving the company a market capitalisation of 21.7m.

The sell-off came after Connaught, which specialises in social housing maintenance, warned it would make significant write-downs on the carrying value of assets as of the end of August last year.

Analysts have for several months raised questions over how the company accounts for its contracts.

However, Connaught said on Friday that the write-downs would be before taking account of the impact of the ongoing assessment into the accounting policy for mobilisation costs.

Paul Checketts, analyst at Oriel Securities, said: I would guess that theyve realised that a lot of the contracts have been priced inappropriately and will therefore be loss-making.

Connaught also said on Friday that it now expected to post a material loss before interest, tax and amortisation in the year to August.

Analysts had previously expected earnings on an ebita basis of 45m following a profit warning in June, although several withdrew forecasts in recent weeks due to the mounting uncertainty.

Bankers last week granted the company a vital short-term 15m overdraft facility after Connaught warned it was in urgent need of additional funds as suppliers and sub-contractors had put pressure on the companys cashflow.

Sir Roy said in a statement on Friday that the group was continuing to hold refinancing discussions.

Connaught said in its original profit warning that 31 contracts had been affected by local authorities budgetary pressures.

this is becoming more and more a no-brainer, though by monday it may become almost impossible to open new short positions

My 12p is getting closer.

You have achieved your target, mitzy.

Down another 30% this morning hlyeo.

Edit.. 9 p.