Administrators seek buyers for construction firm Rok

ADMINISTRATORS are seeking a buyer for Rok today after trading in the company’s shares was suspended this morning.

Rob Hunt, Mike Jervis and Jeremy Webb of PwC were appointed as joint administrators and immediately began a review of the firm’s financial position.

Rok employs around 3,800 people providing repairs and maintenance services as well as taking on building projects in both the public and private sector.

The problems at Rok, which has offices in Leeds and Wakefield, come just two months after rival Connaught also went into administration.

Mr Jervis, partner at PwC said: “In response to changes in market conditions, Rok Plc had taken a number of steps to improve operations and to develop a sustainable and profitable business going forward.

“However, due to difficulties in meeting the company’s  financial obligations, the company and certain subsidiaries have been placed into administration to protect the business and assets.

“Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses.  We will work with the existing management team, employees, suppliers and customers to try and ensure that we achieve a positive solution.  

“Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal. We will provide further updates throughout the coming weeks.”

Rok’s pre-tax profits halved from £6m to £3m in the first half of the year on the back of a £54.6m fall in revenue and also experienced problems in its plumbing, heating and electrical division which saw the suspension of finance director Ashley Martin.

Mr Martin was subsequently exonnerated after a review which blamed a reduction in work from the private housing sector and weak controls in that division however he chose to leave the company anyway,

In a brief stock market announcement this morning, the company said: “The board of Rok plc announces that it has resolved to put the company into administration and to make an application to the Financial Services Authority to suspend the listing and trading of the Company’s Ordinary Shares on the Stock Exchange.  

“It is anticipated that the administration and suspension will become effective shortly.”

The Financial Services Authority later confirmed the suspension of Rok shares.