Stenoak halt after insurance blow

SHARES in road resurfacing and fencing group Stenoak Associated Services were suspended on Friday as the company admitted it could go bust.

A share price collapse this month - the stock has more than halved in the past three weeks - had sparked inquiries to Stenoak's advisers about the company's health. But it was not until today, when the shares lost another 3 1/2p to 46 1/2p, that the company put out a statement and requested a suspension of trading.

The company said it was in 'negotiations with its major bank and trade credit insurers after the withdrawal of credit insurance from a number of the major suppliers'.

Stenoak, the contractor that resurfaced The Mall red a couple of years ago, went through a management shake-up last month with the influx of five new directors as chairman Adrian Drewe, son of the founder and Stenoak's largest shareholder, stepped down.

Stenoak recently reported an £80m forward order book and profits for last year of £3.8m.