Sector plans as Connaught struggles

Connaught, which provides maintenance and repair services to the sector, this week continued discussions with creditors about its future.

The firm expects to record a pre-tax loss for its financial year to 31 August. It said it expects to make ‘significant write-downs’ to the value of its assets compared to their value last year.

Connaught secured £15 million from lenders following a statement saying it was in urgent need of funds. But a rival contractor said dozens of associations with Connaught accounts across England and Wales have been contacting it to see whether it could step in if the firm folds.

A2 Dominion, which owns or manages 33,000 homes across London and the south, holds a 12-year service contract worth £117 million with Connaught.

Andrew Evans, executive director at A2 Dominion, said ‘detailed contingency plans’ had been put in place to ensure the association can continue to maintain a responsive repairs service, but would not say whether this had involved approaching another firm.

Paul Haines, public relations manager at Connaught, said: ‘It’s only natural our clients are making sure they have the appropriate back up, but the fact remains we have contracts with our clients.

‘We have been proactively involved in contacting our clients and the majority of them have been extremely supportive and understanding.’