News
Connaught undergoes second FSA investigation
27 July 2010 at 15:46
A second investigation into council house maintenance firm Connaught has been launched by the Financial Services Authority (FSA), according to reports.
After months of well-documented financial troubles, the company is now being probed by the regulator to find out whether it fully disclosed its financial condition to investors ahead of last month's shock profits warning.
The firm's chairman Sir Roy Gardner, who was installed in his position in May, warned that the company was likely to have £200 million in debt by the end of the year, significantly higher than the £120 million forecast just three weeks ago.
Oriel Securities analyst Paul Checketts told the Daily Mail: "Connaught is almost like a black box - you just can't see what's going on. I can't understand it and so I can't see where it ends."
Last week, Peter Jones was removed managing director of Connaught's northern division as lawyers were called in to begin an internal inquiry about his suspected failure to disclose a share sale two days before the major profits warning was announced.
Posted by Tony Miller