SOCIAL housing firm Connaught looked to be on the brink of collapse today after lenders refused to offer additional support to the stricken company.

The Exeter-based repair and maintenance specialist has been in turmoil since its June warning that Government spending cuts could blow a £200 million hole in revenues over this year and next.

Amid speculation that it could be placed into administration as early as today, Connaught requested the suspension of trading in its shares and said a solution to its funding issues was "increasingly uncertain".

It is in discussions with other parties but added that its lenders were unlikely to provide additional funds.

The firm, which employs 10,000 people and has around 180 multimillion-pound social housing contracts in the UK, has been in talks with its lenders after a review identified an "urgent requirement" for additional funds to meet current and ongoing business, in part due to pressure from suppliers and contractors.

Royal Bank of Scotland recently provided Connaught with a further £15 million in an attempt to keep the group going, the BBC said today.