Wednesday, 18 January 2017

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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