Connaught chief quits after profit warning
The chief executive of troubled contractor Connaught has stepped down with immediate effect.
Mark Tincknell, who took over the role in February, will continue to work at the company but will relinquish his role as chief executive.
In an interim management statement released today for the period 1 March to 7 July the company says Mr Tincknell is leaving his role due to health issues.
Finance director Stephen Hill will also step down in October, no reason has been given but Connaught insists the decision was his.
The company’s share price halved earlier this month after it issued a profit warning.
The contractor said 31 social housing contracts had been deferred by councils, hitting revenues by £80 million.
Following the profit warning the company’s share price fell from 317p to 114p and it has tumbled further to 110p following this morning’s announcement
The company has readjusted its expectations for revenue and earnings for next year following the contract deferrals.
Sir Roy Gardner, Connaught non-executive chairman, said: ‘The outlook for Connaught remains positive.
‘The cost reduction programme will realise significant savings whilst providing a solid platform from which we can achieve further growth.
‘Our order book is strong and our newly formed big ticket sales team will ensure we capitalise upon a record pipeline of enquiries.
‘I believe the group is ideally placed to meet the needs of our clients which in these uncertain times are focused upon achieving budget savings whilst maintaining a high level of customer service.’
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Readers' comments (2)
gordon thompson | 08/07/2010 6:13 pm
Stinks a bit this one doesn't it
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Anonymous | 09/07/2010 11:05 pm
I don't know about anyone else, but if I was a member of the Board at Connaughts, I would have made sure the Chief Executive would not be allowed to make public such a comment. What were the board doing when he decided to 'leak' bad news? The role of a CEO is to remain positive in the most challenging of times, especially if you are a FTSE 100 firm. Any PLC Board Director will tell you that whatever you say public (and in some cases privately too) will have a significant effect on your Company's share price. It was bad enough knowing that some future contractual arrangements looked uncertain, but broadcasting this before the bombshell struck, as well as before being able to do something to address ie put contingency plans into place, what did the CEO and FD go and do? Yes, I bet you get the picture now....
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