Company led by Argyle chairman, behind city's housing revamp, 'nearing collapse'
THE property services company behind a £24.5million revamp of social housing in Plymouth, chaired by Plymouth Argyle's chairman Sir Roy Gardner, is on the brink of going into administration, according to the BBC.
Connaught last month told The Herald its contract to revamp former Plymouth City Council homes would go ahead despite the company's financial crisis.
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Today the BBC said the firm, which employs 10,000 people across the country but has £220million of debt, was expected to announce it was going into administration later today.
The BBC said Connaught ran into serious difficulties over the past couple of months, after it emerged that a series of contracts would be loss making.
Lenders have refused to offer additional support to the stricken company.
Amid speculation that it could be placed into administration as early as today, Connaught requested the suspension of trading in its shares and said a solution to its funding issues was “increasingly uncertain”.
It is in discussions with other parties but added that its lenders were unlikely to provide additional funds.
Exeter-based Connaught, chaired by Plymouth Argyle chairman Sir Roy Gardner, also faces an investigation by City watchdog the Financial Services Authority (FSA), and has seen its shares tumble since warning a month ago of a £200million blow to revenues as a consequence of Government spending delays.
Connaught opened new offices at Plymouth’s Foresters Business Park only last year.
In December, it was awarded the lucrative five-year deal to fit about 14,000 kitchens and bathrooms in homes transferred by the council to Plymouth Community Homes.
Royal Bank of Scotlandrecently provided Connaught with a further £15m in an attempt to keep the group going.
The BBC says Connaught's bank creditors have decided to put the business into administration.
In his BBC blog, Robert Peston writes: "In spite of the severity of the economic crisis that engulfed the UK in 2008, few listed businesses have collapsed.
"In that sense Connaught, a FTSE 250 company which at one stage had a market value of well over £500m, is unusual."








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by Old Fella, Plymouth
Wednesday, September 08 2010, 8:07PM
“To Ron from Plymouth a Connaught worker.
You will get more support and sympathy from the people of Plymouth than you ever will from Sir Roy Gardner who has long demonstrated his only concern is Sir Roy Gardner.”
by Old Fella, Plymouth
Wednesday, September 08 2010, 8:04PM
“Ron of plymouth a connaught worker - You will get more sympathy and support from the people of Plymouth than you ever will from Sir Roy Gardner who has long demonstrated his only concern is Sir Roy Gardner.”
by Ron, plymouth
Tuesday, September 07 2010, 8:28PM
“To all you idiots commenting about Argyle on this news topic, the topic is about a company going under, I work for this company, Roy Gardner only took over in June to try to rescue it, in the process he made a big mistake, the damage had already been done by the previous chairman and the so called directors who fiddled the company out of millions, stop running Argyle down and spare a thought for the workforce that are about to become redundant”
by Old Fella, plymouth
Tuesday, September 07 2010, 8:22PM
“Don¿t worry Sir Roy Gardner won¿t be any the worse off even if Connaught does go to the wall, the fee¿s he draws from his chairmanship are small beer for someone like him. His eye will still be on the main chance of getting his developers mits on Central Park, all that land for next to nothing from his pals in the City Council. As for Sid from Crownhills idea that he is an innocent wonder worker who will still take Argyle to the Premiership, Not this side of the next millennium my old fruit. On one fact I am sure Sid is right and that is his commitment to getting the world cup in 2018, on the back of that rides all his plans for getting hold of Central Park. He¿s obviously persuaded Vivian and the rest of the council that he can swing it with his contacts in FIFA as long as he gets the land for next to nothing and has a supply of nicely filled brown envelopes. Watch this space, we ain¿t seen nothing yet!!!!!”
by argyleultra, derby
Tuesday, September 07 2010, 7:11PM
“the decline of argyle started the moment sturrock embarked on spending around 6million quid (including signing on fees wages etc)replacing bank-blake, norris, gosling & co.
The club is still paying the price two years on, and may do for some time to come.”
by demportboy, plymouth
Tuesday, September 07 2010, 7:00PM
“well I have to applaud Sir Roy, he famously "doesn't do failure" so this bold venture in to new territory can only be admired coming hard on the heels of Argyle's relegation. I'm desperately trying to be optimistic Sir Roy honest I am but from where i'm sitting you just look so damn complacent and incompetent which is one thing when it comes to steering our football team towards the lower leagues whilst trying to cash in on its assetts but this is people's jobs and lives you've messed up here. Is it me or is the collar of your starched white shirt getting tighter?”
by Frank, Plymouth
Tuesday, September 07 2010, 3:14PM
“@ Dave (blah blah) my specialism is dealing with contracts in maintenance and construction and I get paid well for it.
Thanks for "telling" me (I bet you're a bundle of fun to work with) that "nothing was missed". I am sure that as in good working and professional practice, the client would have sought bank gauntnesses prior to the issuing of a contract? If so I'll be interested to see how the relationship between the bank and the client evolves!
Are you in Public Relations or is this simply your Internet bravado?”
by ROBROY, PLYMOUTH
Tuesday, September 07 2010, 2:51PM
“The difference being Lee, PCC had a majority financial share in CityBus, which as we know they sold to GoAhead. They have no such financial share in Plymouth Community Homes, even though there are some councillor board members. There are also some tenant and leaseholder board members too, but they have no financial holdings either.
For the record I was totally opposed to the transfer, on the grounds that the land and property belonged to all the citizens of Plymouth, not just the tenants. Moreover, the land was far more valuable that the homes on it, and it was obvious that some of the houses were not suitable for renovation. These would be demolished and the re-build would be on smaller sites, thus giving more tenantable properties per acre.
I do not know where the resident you referred to lives, but many years ago I lived in Grassendale Ave. and Woodville Ave, now North Prospect, and it was obvious to me that those properties could not be properly fitted with new batrooms and kitchens. Plus the fact that they stood in generous sized gardens which could perhaps support two new dwellings.
I also argued that Cornish Unit dwellings would be under threat, since it would be foolish to re-new the insides when the outsides had suspect concrete cancer.
Nobody listened to these arguments since all ears were tuned to the siren song of new bathrooms, kitchens, central heating, windows etc etc.
I have to repeat, the contractor for this work is employed by Plymouth Communtiy Homes, not Plymouth City Council.”
by Lee, Plymouth
Tuesday, September 07 2010, 2:09PM
“Not quite true Robroy....Look at the board for Plymouth Community Homes? Its a quango like the safety partnership along the lines of Citybus...One casual observation all the City businessmen who have connections with the council are failing one by one...another John Steven?
The appear on the face of it to be asset strippers whom act with impunity...at tax payers expence.
One intresting comment i received from an affected resident was the simple fact they voted for new kitchins & bathrooms....no mention was every made that they would be loosing thier homes? Is Plymouth Community Homes no-more then a PR front for the Council to operate in a under hand manner? Argle is a prime example off how reliant they are on funding and support form the Council?”
by ROBROY, PLYMOUTH
Tuesday, September 07 2010, 1:47PM
“I cannot think why Plymouth City Council keeps getting mentioned in connection with this issue.
PCC transferred its housing stock, and the land it stood on, to Plymouth Community Homes over twelve months ago. They did so after the tenants agreed to the transfer in a ballot.
Almost half of the Council's housing stock had failed to meet the standard of the Decent Homes requirement, and they were not permitted to borrow the money to carry out those improvements. Plymouth Community Homes, a not for profit housing association, was able to to finance the work and engaged contractors to carry that work out.
If Connaught are in financial difficulties then that is between them and Plymouth Community Homes, who will have to engage another contractor to carry on the refurbishment.
Plymouth City Council no longer own the social housing stock and consequently this business has nothing to do with them.”