Budget cutbacks hit Connaught shares

Shares in social housing firm Connaught have slumped another 37% after the company issued a profit warning at the end of last week.

Connaught said on Friday that it had identified 31 contracts that had been deferred, following the mass spending cuts announced in the Budget.

It now expects revenues to be £80m lower and profits £13m lower this year.

Exeter-based Connaught carries out maintenance and repairs for many social housing projects.

Its shares closed down 80p to 135p at the end of trading on Monday. This followed a 33% fall on Friday.

But Connaught says the medium-term outlook for its business "remains strong".