ANALYST VIEWS:WHAT DOES TODAY’S STATEMENT MEAN FOR CONNAUGHT?
DAVID JONES | IG INDEX
“Companies have been battered in the past following profit warnings, and there’s always the possibility that they will pull through. It’s hard to see the banks offering to lend Connaught more in the current climate, so its best bet is probably for a large investor to come along and give it some financial breathing space.”
JOE BRENT | LIBERUM CAPITAL
“This is clearly a disturbing statement which leaves us uncertain about trading and the financial position. More encouragingly, Sir Roy Gardner has put together an A-team management, including Stephen Billingham, who we think is a top notch FD. But we are still in the dark and retain our ‘sell’ rating.”
PAUL CHECKETTS | ORIEL SECURITIES
“The situation at Connaught appears to be spiralling out of control. What began as a 10 per cent revenue shortfall has become potential administration. Chairman Roy Gardner has brought in some serious business men in an attempt to sort out the mess. They will have their work cut out. The shares have to be avoided. Sell.”