Connaught shares down 46% after warning over losses

The social housing specialist Connaught said it will likely make a material loss this year and will write down the value of its assets after government cutbacks hurt its core business.

Its shares, which have tumbled almost 90 per cent since it first warned on profit in June, plunged again on Friday and closed down 46 per cent at 15.5p. Connaught, which is in crunch talks with its lenders, also said it will make a provision for future losses on current contracts in its results for the year to the end of August.

The chairman Roy Gardner, who brought in a new management team last month, said he was confident the situation could be turned around. "This is a business worth fighting for and my new team and I ask for your continued support for our efforts to rebuild Connaught," he said in a statement.