Wilson Connolly sounds alarm

THE controversy surrounding Allan Leighton's nine directorships erupted again today when Wilson Connolly, the housebuilder he chairs, issued a profit warning and said it was parting company with chief executive John Tutte.

The stock slumped 8% to 142p as Leighton confessed the company had failed to implement the recovery plan that was devised following the release of poor interim results early last month.

The former Asda supermarket chief, who is paid £175,000 a year in his role as Wilson's non-executive chairman, said he would assume management responsibility for the group as it tried to improve its fortunes.

This will involve a full review of the business in conjunction with blue-blooded stockbroker Cazenove in a bid to improve management and cut costs.

Leighton said Tutte, who had been charged with implementing the recovery-plan, would be compensated with one year's salary of £250,000.

Analysts cut their pre-tax profit forecasts from about £75m to £55m for this year in the belief that the number of units completed by Wilson would fall from current estimates of 4900 to about 4600.

The firm said prices were still meeting expectations, leading analysts to suggest that margins would be slightly higher than the 8% recorded in the first half.

Leighton quit as head of Wal-Mart Europe, which owns Asda, a year ago, saying he planned to 'go plural.'

His insatiable appetite for public directorships, which include Leeds United, BSkyB, Bhs Stores, Scottish-Power and lastminute.com, has since attracted much criticism. But today he defended his policy, saying he would halve the amount of time he spent at Bhs to one and a half days a week to devote more efforts to Wilson, where he is currently working '18-hour days.'

'I work six days a week from six in the morning to 8.30 at night,' Leighton said. 'Sad I know, but I enjoy it.' It has been a tough year on the share market for Leighton.

Lastminute's stock has plummeted from 120p since January to 22 1/2p today, BSkyB from £10 to 792p and ScottishPower from 520p to 391 1/4p.

He said Wilson's business had become too complicated. 'There is a lot of fog there and a degree of complexity that needs to be taken out.'

But there was no plan to cut jobs. 'This is not to do with losing heads, it is to do with what's in heads. It is about getting the margins and getting the costs out.'