Fri, 10 Sep 2010 | ADMINISTRATION
Fellow construction group Morgan Sindall has rescued Connaught’s social housing unit out of administration, securing the jobs of 2,500 people in the process.
Morgan Sindall has snapped up the social housing repair division for its own public sector arm Lovell, in a discounted £28 million deal with KPMG, Connaught’s administrator. Lovell expects to bring in an extra £200 million per year from the acquired contracts, worth between £20 million and £40 million.
Connaught had been struggling with a falling share value, problems with securing much-needed cash and loss making contracts, before its creditors placed the parent company and social housing maintenance arm into administration on Wednesday.
It has been revealed that the firm’s accounting practices had also been put into question. Deloitte were brought into investigate.
Joint administrator Richard Heis intends to find homes for the remainder of the contracts and to secure the jobs of the 1,900 not transferred as part of the Lovell deal.
Two businesses in the group were not affected by the administration process, namely the ground maintenance arm Connaught Environmental, and the health and safety division Connaught Compliance. They continue to trade as normal.
For sale is a long-established tree surgery and arboricultural services business with an excellent reputation, serving both domestic and commercial sectors across Southern England, including the Home Counties and London.
An opportunity has arisen to acquire a mechanical engineering company specialising in the Water Industry. Benefitting from over 3 decades of trading, this business has built a solid and long standing client base comprised of prominent UK utility comp...
An opportunity has arisen to acquire a reputable IT support and development services provider with a UK-wide client base and a proven record for innovation and resilience in the constantly evolving IT sector. Throughout its 25+ year trading history,...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.