CONSTRUCTION firm Rok has been placed into administration.
The London-based company, which had a strong regional presence including offices in Birmingham, Stafford and Warwick, had been in talks with its banks regarding a refinancing, but its board announced this morning that the business would be placed into administration and that its listing on the London Stock Exchange would be cancelled.
“It is anticipated that the administration and suspension will become effective shortly,” the company said in a statement to the stock exchange this morning. “Further announcements will be made in due course.”
The £715m-turnover company, which billed itself as “Britain’s Local Builder” had grown quickly, but much of this was through acquisition, such as its 2006 purchase of Birmingham -based Kingfisher construction.
Turnover climbed from over £500,000 in 2004 to more than £1bn in 2008, but it was hit by the decline in the construction markets. Around a third around a third of its income came from the social housing sector – including a major contract won in Bolton earlier this year.
However, when it revealed its half-year results in September, which showed that profits halved to £3m and revenues slipping by £56.4m to £308.1m, the firm announced that a review of its accounts had revealed serious failings in the financial controls” of its plumbing and heating business which led to around 80 job cuts in the division and the suspension of its finance director Ashley Martin.
Martin was later fully exonerated of any wrongdoing, but decided to leave the firm anyway.
