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Connaught plc appoints KPMG as Administrators
7th September 2010
Following this morning's announcement that shares in building services provider Connaught plc, the Board of the beleagured company has confirmed the appointment of KMPG as Administrators for Connaught plc and Connaught Partnerships Limited. The company's Compliance and Environmental Divisions will however continue to trade normally.
A statement issued by the company said, "Since the end of July, Connaught has held discussions with its lenders and alternative providers of finance with the objective of securing additional funding and a restructuring of the Company's financing for the longer term. During this period, the Board of the Company has also continued to explore its options to improve the financial position of the Connaught group of companies (the "Group") and to realise value for the benefit of all stakeholders.
These initiatives failed to reach a satisfactory conclusion in the time available and, following extensive discussions with the Group's secured lenders, it is now clear that sufficient support would not be extended to the Group as a whole to enable it to continue trading as a going concern. As a consequence, the Board is saddened to announce that it is in the process of appointing partners from KPMG as administrators of Connaught plc and its subsidiary, Connaught Partnerships Limited, which comprises its Social Housing Division.
The Group's other main subsidiaries, Connaught Compliance Limited, National Britannia Holdings Limited, Fountains Limited and Connaught Environmental Limited (and their respective subsidiaries), which comprise the Group's Compliance and Environmental divisions, are not being placed into administration and will continue to trade normally. An agreement with its funders is in the course of being negotiated and an announcement will be made shortly tomorrow regarding this."
Connaught plc was originally established in 1982 by Bill Tincknell, as a concrete repair specialist, based in Sidmouth, Devon. The company was floated on the Alternative Investment Market (AIM) in 1998. During the 21st. Century, the company has grown organically and through the acquisition of smaller companies. Today, the Exeter based company is a constituent of the FTSE250, employs nearly 10,000 people, and in 2009 had operating revenues of £660m with net operating income of £17.5 million.
