CNT Connaught

 

TIDMCNT 
 
RNS Number : 8809P 
Connaught PLC 
26 July 2010 
 

 
Connaught plc 
("Connaught" or the "Group") 
 
Update 
 
Cash position 
 
In the Interim Management Statement of 8 July 2010 the Board stated that it 
would monitor cash levels with vigilance. 
 
Following a detailed review undertaken by the Group and its advisors, it has 
identified an urgent requirement for additional funds to meet the current and 
ongoing needs of the business, in part caused by additional pressure from 
suppliers and sub-contractors. The Group has also concluded that net debt will 
be significantly in excess of the previously advised level of GBP120m at its 
year end of 31 August 2010 and that it will breach its banking covenants. It has 
therefore entered into negotiations with its lenders to secure additional 
funding and these discussions have been constructive. 
 
Concurrently, the Group is undertaking a review of its current year trading 
performance and the implications this may have on its full year financial 
performance. 
 
The Group expects to make a further announcement as soon as appropriate 
regarding its funding position. 
 
 
Management changes 
 
Sir Roy Gardner, Non-Executive Chairman of the Group since 5 May 2010 is making 
a number of new appointments aimed at strengthening the management team. 
 
Stephen Billingham, the former Finance Director of British Energy Group plc and 
W S Atkins plc has joined the Group to work for the Chairman on financial and 
funding matters. 
 
Roger Wood, the former Managing Director of British Gas Services and Managing 
Director of the AA business, is chairing a steering committee responsible for 
Connaught's operational efficiency programme, focussing on the delivery of 
significant cost savings. 
 
Michael Young, who was Corporate Affairs Director at Centrica plc and Director 
of Corporate Policy and Communications at Compass Group plc, will be advising 
the Board on communication and reviewing management processes. 
 
Chris Sellers, the Group's Business Development Director, who previously held 
operational roles at Capita, Agilisys and Shell, has assumed the full 
operational role of acting Chief Executive of the Social Housing business. 
 
 
 
Comment 
 
Sir Roy Gardner commented 
 
"These are challenging times for Connaught.  We are fortunate that we have been 
able to attract a number of senior and experienced individuals to support the 
company at this time and we welcome the constructive discussions with our 
lenders. 
 
We continue to place great importance on the solid relationship we have built 
with our supply chain and customers and the continuing support we receive from 
our employees." 
 
 
For further information, please contact: 
 
+----------------------------+----------------------------+ 
| Connaught                  |                            | 
| Paul Haines, Group PR      | 01392 340 667              | 
| Manager                    |                            | 
+----------------------------+----------------------------+ 
| Finsbury                   | 020 7251 3801              | 
| Faeth Birch                |                            | 
| Gordon Simpson             |                            | 
+----------------------------+----------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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