ALMO ends contract with Connaught

Barnet Homes, which manages Barnet Council’s 15,000 homes, will end the contract in February 2011. It was due to finish in March 2012. The contract allows Barnet Homes to cancel if it gives six months’ notice.

A Barnet Homes spokesperson would not divulge the reasons for the decision, but said that because the procurement of its maintenance suppliers would soon be up for tender again, it was a ‘good time’ to review the contract.

He said: ‘We would stress that the severance is happening on amicable terms. We would like to assure residents that we are implementing transition plans as a matter of urgency, and we are seeking to minimise any disruption to our repairs service.

‘We are looking at a number of eventualities around long-term repairs provision, and will continue to monitor closely Connaught’s position.’

Connaught, which earlier this year issued two profit warnings and was forced to take out a £15 million emergency loan, is continuing talks with lenders as it attempts to avoid collapse. Last week it confirmed Tony Rogers, social housing area operating director in the south east, recently left on ‘gardening leave’. A spokesperson denied that the departure was linked to the company’s financial problems.

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