A firm that specialises in the provision of social housing cross the UK has been hit hard on the Stock Market after it said it had identified an "urgent" need for extra funds.

Shares in Exeter-based social housing firm Connaught have slumped 76% after news that debt levels were expected to be worse than feared and it would breach its banking covenants.

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The company announced that its business was expected to be hit by government spending cutbacks announced in the Budget.

In morning trade, shares in Connaught were down by 76.52% at 23.97 pence.

Its shares have now lost more than 90% of their value since late June, when it announced it had identified 31 contracts that had been deferred following the spending cuts announced in the Budget.

At the time Connaught also said it expected revenues to be £80m lower and profits £13m lower this year.

The firm carries out maintenance and repairs for many social housing projects.

(BMcC/GK)