Budget fears halve Connaught's share price
Connaught’s share price has halved following a profit warning issued on Friday.
The contractor said it had identified 31 social housing contracts which had been deferred by councils, hitting full year revenues by £80 million and earnings by £13 million.
The company’s share price plummeted from 317p to 133p following the announcement before recovering slightly to 148p this morning.
Connaught is undertaking a cost reduction programme which it says will make savings of at least £25 million in the next financial year.
It said its medium-term outlook remains strong, with a record bid pipeline of £5.3 billion.
Rival firm Mears moved to reassure the markets following Connaught’s announcement.
A statement issued on Friday afternoon said: ‘Mears notes the announcement made by Connaught regarding the delays in contracts within social housing and reflective share price movements.
‘Mears is pleased to announce that they have not experienced such delays as a result of the emergency Budget, and current trading remains in line with management expectations.’