Connaught plc
| Company type | Public limited company |
|---|---|
| Industry | Social housing, public sector, compliance |
| Founded | 1982 |
| Founder | William Tincknell |
| Defunct | 2010 |
| Fate | Entered administration |
Key people | William Tincknell (founder), Mark Tincknell (former CEO), Mark Davies (former CEO), Ian Carlisle (CEO from July 2010), Sir Roy Gardner (chairman from May 2010) |
| Products | Social housing services, compliance services, environmental services |
Number of employees | Approximately 2,500 (jobs safeguarded by Morgan Sindall acquisition) (2010) |
Connaught plc was a British enterprise engaged in the social housing, public sector, and compliance industries. It was listed on the FTSE 250 Index before entering administration in October 2010.
History
Established in 1982 by William Tincknell (1935–2018) as a specialist in concrete repair, Connaught won its initial significant social housing contract in 1986.
Expansion
During the early 1990s, Connaught diversified its offerings to encompass external wall insulation, overcladding, and the refurbishment of roofs, windows, and doors within the social housing sector. The company also extended its geographical footprint. Key corporate milestones in the 1990s included a management buyout supported by HSBC Private Equity in 1996 and a listing on the Alternative Investment Market in 1998. Mark Tincknell held the CEO position throughout this timeframe. By 2004, Connaught had acquired providers servicing social housing in Scotland and Wales, generating revenues close to £300 million with very low net debt. Mark Davies assumed the CEO role in 2005, followed by Stephen Hill from Serco joining as finance director in 2006. The company achieved full admission to the London Stock Exchange in 2006 and was incorporated into the FTSE 250 Index by 2007.
Following its acquisition of Gasforce in 2002, Connaught engaged Altium Capital from 2003 to advise on regulatory matters and acquisition strategies. Between 2005 and 2007, it completed seven acquisitions within related sectors, culminating in becoming the UK's foremost integrated compliance services provider through the £91 million purchase of National Britannia in 2007—financed partially by £57.9 million raised from investors. In 2009, Connaught acquired Fountains plc, a publicly traded environmental services firm, for £13 million.
Collapse
Trouble arose after CEO Mark Davies unexpectedly resigned in January 2010 following share sales valued at £5.5 million. Although initially optimistic, the company issued a profit warning on 26 June 2010, attributing reduced profitability to the emergency budget introduced by the incoming government. Subsequently, Connaught announced a 'material loss' for the fiscal year ending 31 August 2010.
On 8 July 2010, Mark Tincknell stepped down as CEO and was succeeded by Ian Carlisle. Earlier that year in May, Sir Roy Gardner was appointed chairman of Connaught's Board.
Connaught plc and its social housing division, Connaught Partnerships, entered administration on 8 September 2010. That same month, Morgan Sindall acquired Connaught’s repairs division, safeguarding approximately 2,500 jobs. In February 2011, Rentokil Initial bought Connaught’s businesses related to Fumigation & Pest Control, Water Treatment & Hygiene, and Fire Safety & Prevention for £5.6 million.
Regulatory investigation
The Accounting and Actuarial Disciplinary Board conducted an investigation into the preparation, approval, and auditing processes of Connaught plc's financial statements prior to its administration.
Operations
The Group functioned through three primary divisions:
- Connaught Partnerships
- Connaught Compliance
- Connaught Environmental