Rok performance warning as FD replaced
MAINTENANCE and building services firm Rok has suspended finance director Ashley Martin following a review of the firm’s plumbing, heating and electrical business.
The review, by accountants BDO, found “serious failings in the financial controls of the PHE business” the company said in a statement this morning.
Earlier this year Rok, which has offices in Leeds, Wakefield and Grimsby, discovered a series of underperforming contracts were hurting the business. They were cancelled and the business was restructured.
But the performance of the PHE business remained disappointing and the board asked BDO to conduct a further independent review.
The company said that the board had decided Rok “must have new financial leadership” and Ashley Martin had been suspended “with immediate effect”. His duties will be passed to David Miller, a specialist interim chief financial officer and former Amey executive.
Rok said the PHE business was not now expected to make a contribution to profits this year which will leave the group’s performance “significantly below market expectations”.
The statement said: “The board believes that it has taken appropriate action in the best interests of shareholders and the future profitability of the group.
“Rok’s fundamentals are strong – a solid order book, good momentum in the social housing and construction divisions and very good cash generation leading to materially lower debt. With a significantly lower fixed cost base and having addressed the underperforming operations, the board is looking ahead with confidence.”
