Rok plummets to massive losses

Published on Monday 16 August 2010 21:58

Building services firm Rok yesterday revealed a multi-million-pound loss as it counted the cost of job losses and restructuring at its troubled plumbing division.

The group recorded half-year losses of 3.8 million in the six months to 30 June and said shortcomings in financial and operational controls at the division represented a "regrettable chapter" in its history.

Group revenues fell 15.5 per cent to 308.1m. Dividends were cut by a third to 0.5p a share.

The firm's problems emerged following an investigation into its plumbing, heating and electrical division which was instigated after a restructuring failed to address a poor performance flagged in a trading update in April.

The board initially believed the problems had been caused by underperforming contracts. It called in accountancy firm BDO to conduct an independent review, which uncovered serious failings in financial controls. Rok suspended finance director Ashley Martin.

Last week, Andy Mallice, managing director of Rok Scotland, said the company's operations north of the Border were "a success story".

The Exeter-based company added yesterday that its overall order book of 435 million reflected good momentum in its social housing and construction arms.

Its shares rose almost 12 per cent on the news. They closed the day up 6.5 per cent at 20.5p.