Connaught's top team resigns

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The Independent Online

The top management team at Connaught resigned yesterday, nearly two weeks after the social housing repairs group issued a profit warning that wiped a third off its shares.

The chief executive, Mark Tincknell, who was appointed in January, will step down in order to recover from recent health issues, the company said, and the finance director, Stephen Hill, will leave at the end of October.

Mr Tincknell will remain with the group and help to find a successor, Connaught said, while Ian Carlisle, head of the compliance division, will be acting chief executive.

The group's chairman, Roy Gardner, will also review how the company books revenue on its long-term contracts in light of the tightened economic environment, the company said. Some analysts had raised concerns about how Connaught capitalised spending on its long-term contracts.

The company said on 25 June that it had been hit by contract deferrals as local governments cut back on spending, which would reduce sales by £80m and earnings before interest, tax and amortisation by £13m this year.