CEO and FD leave Connaught as spending cuts bite

The group, which seen its share price slump by almost two thirds in the past two weeks since warning over local government budget cuts, said Mark Tincknell, who was appointed chief executive earlier this year, is standing down immediately to recover from recent health problems.

Connaught also revealed finance director Stephen Hill is standing down in October after four years.

Ian Carlisle, chief executive of the group's compliance division, will be acting chief executive while the group finds a successor. Mr Tincknell was only appointed to the role in February and will work with chairman Sir Roy Gardner to find a replacement.

Late last month the group said it had identified 31 contracts where some capital spending has been deferred, warning this could slash 200m from revenues over the next two years.

The group declined to say where the axe will fall, but is working on schemes across the region including revamping council housing in Hull and North Yorkshire, as well as a 28m contract to repair and maintain 12,000 Yorkshire homes, won last year from housing association Yorkshire Housing.

Connaught insisted its order book is strong at 2.6bn, and its bid pipeline stands at a record 5.3bn.

It added its environmental business remains strong, supported by revenues from the regulated utilities industry. It added its compliance division is generally holding up well, although it is reducing its exposure to small and medium-sized businesses.

Sir Roy said: "The outlook for Connaught remains positive. The cost reduction programme will realise significant savings whilst providing a solid platform from which we can achieve further growth.

"Our order book is strong and our newly formed big ticket sales team will ensure we capitalise upon a record pipeline of enquiries. I believe the group is ideally placed to meet the needs of our clients which in these uncertain times are focused upon achieving budget savings whilst maintaining a high level of customer service."