RNS Number : 6861Q
06 August 2010
("Connaught" or the "Company")
Review of Trading and Financial Performance
In its announcements of 26th and 29th July, 2010, Connaught said that it was undertaking a review of its current year trading performance and the implications this may have on its full year financial performance.
This now indicates that the Company will record a material loss at an EBITA level (including current year exceptionals) and will be no better than breakeven at an adjusted EBITA level for the current financial year to 31st August, 2010. At the same time we are reviewing the segmental presentation of the business.
In addition, the Company also anticipates making provision for future losses on current contracts in its results for the financial year ending 31st August, 2010.
In the context of its reviews, the Company also anticipates that it will make significant write-downs in respect of the carrying value of assets as at 31st August, 2009, the previous year end. This is before taking account of the impact of the ongoing assessment into the accounting policy for mobilisation costs.
The Company's review is continuing and further details will be announced in the preliminary results for the current financial year.
Sir Roy Gardner said:
"Further to my appointment as Chairman in May and my establishing a series of independent reports on the business, it is clear we face challenges in turning this Group around, but I remain both confident that this can be achieved and committed to seeing the process through.
"My focus, and that of the new executive team, will be to continue the plans for the refinancing of the Company for the benefit of all our stakeholders who have shown loyalty to Connaught over the years. The business remains committed to delivering excellent quality and service for our clients.
This is a business worth fighting for and my new team and I ask for your continued support for our efforts to rebuild Connaught."
Connaught 01392 340 667
Finsbury 020 7251 3801
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