After the identification of urgent requirement of added funds, shares in Exeter-based social housing Company, Connaught, have slid by 76%.

In a statement, Connaught said that the levels of its liabilities were ready to experience the worst than imagined and it would violate the terms and conditions of its loans.

As the Government had announced major cuts in its budget, the firm in the preceding month said that the Government’s decision was going to have a huge impact upon its business.

The morning trade showed Connaught shares hit a drop by 76.52% at 23.97pence.

In the present time, its shares have faced a loss of no less than 90% of their value ever since June, after its identification of 31 agreements that had to be postponed because of the investment cuts declared in the financial system by the Government.

After over a week, Connaught declared that the Chief Executive, Mark Tincknell was going to leave the Company.

After the offices of the firm reviewed every detail carefully, it was spotted that there was an urgent need to contain added wealth, so as to fulfill the demanding requirements of the business and meet the pressures that has been coming from suppliers and various contractors.