Rok goes into administration

Published:  08 November, 2010

EXETER: Rok said today that it had put the company into administration and made an application to the Financial Services Authority to suspend the listing and trading on the Stock Exchange.

"It is anticipated that the administration and suspension will become effective shortly," the company said in the statement.

The move follows weeks of rumours that the company was struggling in the maintenance sector already been hit by the collapse of Connaught.

Rok, which dubbed itself 'the nation's local builder', issued two profit warnings earlier this year, which it blamed on "operational and commercial weakness" from the scaling down of its work installing piping and heating in new homes.

Analysts said Rok's propensity for direct employment, rather than subcontracting labour, was a cause of its difficulties.

When Rok issued its profit warnings in August its shares fell 45% to 13p, giving the group a value of just £52m compared with a market capitalisation of £436m in 2007. The shares were suspended at 181/2p today, valuing the company's shares at £33.17m.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.