Barnet council has terminated its contract with Connaught following the firm’s successive profit warnings
Barnet Homes has dumped Connaught from a housing maintenance contract following the firm’s recent financial woes.
The £7m-per-year deal, which comprised maintenance of 15,000 council homes in Barnet, will end a year early, in February next year.
A statement from Barnet Council’s housing arm said: “Barnet Homes has served notice on our repairs contractor Connaught that we intend to terminate their contract in February 2011.
“We would like to assure residents that we are implementing transition plans as a matter of urgency, and we are seeking to minimise any disruption to our repairs service. We will provide further updates on our website.”
Connaught has already been hit by a huge drop in share price from £4.44 to 11.5p after issuing a series of profit warnings. Firms such as Rok and Mears have confirmed that they have been discussing Connaught contracts with clients.