Crisis contractor Connaught has admitted it will make a “material loss” for the current financial year, ending 31 August 2010, following a review of its accounting practices.
In a statement, the public sector construction and maintenance outfit said: “The Company will record a material loss, including current year exceptionals... for the current financial year to 31st August, 2010.
Connaught said it also anticipated “making provision for future losses on current contracts” in its results for this financial year.
The contractor added that it expects to make significant write-downs in respect of the carrying value of assets as at 31 August 2009, the previous year end.
Last month, Connaught had to secure an emergency loan of £15m to enable it to pay suppliers, after a profit warning had sent its share price crashing.
Chairman Sir Roy Gardner said: “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.
“This is a business worth fighting for and my new team and I ask for your continued support for our efforts to rebuild Connaught."
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