FSA probes Connaught after 70% share fall

The Financial Services Authority is probing social housing maintenance company Connaught after its share price dropped 69% following a warning it was in urgent need of additional funding.

The regulator is examining whether Connaught failed to disclose potentially price-sensitive information to the market in time, a source told the Financial Times.

A spokesman for Connaught said it had recieved 'two requests for information' from the regulator but said it had not been made aware of an FSA investigation into the compnay, despite reports.

'The Company has received two requests for information from the FSA. It has responded to one request and is due to respond to the other request shortly,' he said.

'The Company has not received notification of an investigation by the FSA. The Company is cooperating fully with the FSA and is in regular contact.'

Connaught said on Monday it would breach the terms of its loans as net debt was higher than the £120 million it had previously advised.

It gave a profit warning last month, blaming local authorities that had deferred work after the emergency Budget.

Chief executive Mark Ticknell has agreed to stand down, citing health issues.