Company led by Argyle chairman, behind city's housing revamp, 'nearing collapse'
THE property services company behind a £24.5million revamp of social housing in Plymouth, chaired by Plymouth Argyle's chairman Sir Roy Gardner, is on the brink of going into administration, according to the BBC.
Connaught last month told The Herald its contract to revamp former Plymouth City Council homes would go ahead despite the company's financial crisis.
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Today the BBC said the firm, which employs 10,000 people across the country but has £220million of debt, was expected to announce it was going into administration later today.
The BBC said Connaught ran into serious difficulties over the past couple of months, after it emerged that a series of contracts would be loss making.
Lenders have refused to offer additional support to the stricken company.
Amid speculation that it could be placed into administration as early as today, Connaught requested the suspension of trading in its shares and said a solution to its funding issues was “increasingly uncertain”.
It is in discussions with other parties but added that its lenders were unlikely to provide additional funds.
Exeter-based Connaught, chaired by Plymouth Argyle chairman Sir Roy Gardner, also faces an investigation by City watchdog the Financial Services Authority (FSA), and has seen its shares tumble since warning a month ago of a £200million blow to revenues as a consequence of Government spending delays.
Connaught opened new offices at Plymouth’s Foresters Business Park only last year.
In December, it was awarded the lucrative five-year deal to fit about 14,000 kitchens and bathrooms in homes transferred by the council to Plymouth Community Homes.
Royal Bank of Scotlandrecently provided Connaught with a further £15m in an attempt to keep the group going.
The BBC says Connaught's bank creditors have decided to put the business into administration.
In his BBC blog, Robert Peston writes: "In spite of the severity of the economic crisis that engulfed the UK in 2008, few listed businesses have collapsed.
"In that sense Connaught, a FTSE 250 company which at one stage had a market value of well over £500m, is unusual."
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by Old Fella, Plymouth
Wednesday, September 08 2010, 8:07PM
“To Ron from Plymouth a Connaught worker.
You will get more support and sympathy from the people of Plymouth than you ever will from Sir Roy Gardner who has long demonstrated his only concern is Sir Roy Gardner.”
by Old Fella, Plymouth
Wednesday, September 08 2010, 8:04PM
“Ron of plymouth a connaught worker - You will get more sympathy and support from the people of Plymouth than you ever will from Sir Roy Gardner who has long demonstrated his only concern is Sir Roy Gardner.”
by Ron, plymouth
Tuesday, September 07 2010, 8:28PM
“To all you idiots commenting about Argyle on this news topic, the topic is about a company going under, I work for this company, Roy Gardner only took over in June to try to rescue it, in the process he made a big mistake, the damage had already been done by the previous chairman and the so called directors who fiddled the company out of millions, stop running Argyle down and spare a thought for the workforce that are about to become redundant”
by Old Fella, plymouth
Tuesday, September 07 2010, 8:22PM
“Don¿t worry Sir Roy Gardner won¿t be any the worse off even if Connaught does go to the wall, the fee¿s he draws from his chairmanship are small beer for someone like him. His eye will still be on the main chance of getting his developers mits on Central Park, all that land for next to nothing from his pals in the City Council. As for Sid from Crownhills idea that he is an innocent wonder worker who will still take Argyle to the Premiership, Not this side of the next millennium my old fruit. On one fact I am sure Sid is right and that is his commitment to getting the world cup in 2018, on the back of that rides all his plans for getting hold of Central Park. He¿s obviously persuaded Vivian and the rest of the council that he can swing it with his contacts in FIFA as long as he gets the land for next to nothing and has a supply of nicely filled brown envelopes. Watch this space, we ain¿t seen nothing yet!!!!!”
by argyleultra, derby
Tuesday, September 07 2010, 7:11PM
“the decline of argyle started the moment sturrock embarked on spending around 6million quid (including signing on fees wages etc)replacing bank-blake, norris, gosling & co.
The club is still paying the price two years on, and may do for some time to come.”