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After watching a performance of then child actress Bonnie Langford during which a horse defecated on stage, Noel Coward observed: 鈥淚f they had shoved the child鈥檚 head up the horse鈥檚 arse, they would have solved two problems at once.鈥�

Some believe George Osborne鈥檚 Budget is being used to serve the purpose suggested for Langford鈥檚 head for the problems emanating from social housing maintenance firm Connaught. Connaught鈥檚 share price went into freefall (down 64% by Wednesday lunchtime) following last Friday鈥檚 late profit warning, in which the group lowered its estimates for both this year and next because of cuts unveiled in last week鈥檚 Budget.

This week the company reiterated the fact its numbers had been hit by 31 specific but unnamed contracts because of its Decent Homes legacy.

But the more cynical in the Square Mile wondered if the Budget offered Connaught a handy blanket to cover a number of its problems. Social housing rival Mears, whose share price was dragged south with Connaught鈥檚, was in no doubt. Alan Long, its development director, said: 鈥淚t鈥檚 very much Connaught鈥檚 performance, not the market鈥檚.鈥�

Kevin Cammack at Cenkos Securities added: 鈥淚鈥檓 pretty sure Connaught鈥檚 issues are 90% company specific, but I would not expect investors to be clamouring to support either Mears or Kier until the [public sector] position is clearer.鈥�

Concerns about Connaught鈥檚 accounting practices have been buzzing around the City for a while, and last month, before the profit warning, Investec analyst Guy Hewett issued a note highlighting the fact that Connaught was 鈥渕ore aggressive鈥� than its peers when recognising profit. There was also the abrupt departure of chief executive Mark Davies in January and the ensuing management shake-up.

Andy Brown at Panmure was in a slightly more forgiving mood. 鈥淭he question is whether Connaught is seeing things early, or whether there are more ingrained issues at the company.鈥�