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Examples
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Connaught's administrator is set to be KPMG after the social-housing company suspended its shares pending clarity around its financial situation, a person familiar with the situation said.
Business Watch 2010
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Administrators were called in on Tuesday – just eight days after Connaught's financial year-end.
Connaught administrators say they need goodwill of councils 2010
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Mears has been caught up in the uncertainty caused by Connaught's problems, which the firm initially blamed on the government's proposed public sector cutbacks.
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Connaught's demise comes despite a number of industry heavyweights being brought in to replace and supplement management.
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Connaught's business-development director, to be acting chief executive of the social-housing business.
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Mears and Rok, which both reported results today, are keeping a close eye on Connaught's situation.
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However, Holt said Connaught's problems were company specific, and Mears was seeing opportunities despite the proposed austerity measures.
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Building maintenance business Rok said it was also talking to some of Connaught's clients, even though it revealed today that first-half profits plunged by 50% following the discovery of financial reporting problems, which forced the suspension of the company's finance director last week.
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Mears would be interested in picking up any of Connaught's social housing clients who decide to change suppliers in the short term, but would also be prepared to wait if Connaught's financial problems get worse.
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A potential cut in government spending is responsible for many of Connaught's problems.
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