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Wed October 28 2020

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Connaught loses second CEO inside six months

9 Jul 10 Connaught chief executive officer Mark Tincknell has stepped down from his role with immediate effect, less than six months after taking over predecessor Mark Davies.

Connaught chief executive officer Mark Tincknell has stepped down from his role with immediate effect, less than six months after taking over from predecessor Mark Davies.

The public sector construction and maintenance group also announced it has identfied £25m a year of cost savings following a business review.

This follows a profit warning issued by Connaught last month, which caused its share price to crash.

The group said Tincknell had agreed to relinquish his role as chief executive “to recover from recent health issues”, but will continue to have an “on-going role” in the company.

Ian Carlisle, currently chief executive of Connaught's Compliance division, will become acting chief executive of the group.

In addition, Connaught is losing finance director Stephen Hill, who will step down at the end of October.

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The group said it had hired an external firm to carry out a review of the business, and the initial analysis phase was completed in late June. It has identified “an achievable net benefit of around £25m a year”, with effect from the start of the next financial year.

Following the profit warning, Connaught has reduced its order book forecast. It said: “We believe it is appropriate to be more cautious on the near term outlook and have reduced the order book to reflect this adjustment. The revised order book now stands at £2.6bn.”

During May 2010, the group completed the acquisition of Exor, a financial information supplier-accreditation business, for £5.5m, which will be integrated with its SafeContractor health and safety supplier-accreditation business.

Sir Roy Gardner 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."

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