Rok plunges into administration

 
City A.M. Reporter
Building and social housing repairs firm Rok said it would go into administration and trading in its shares was suspended.

"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," the company said.

Earlier this year Rok's rival Connaught went into administration after it was hit by profit warnings. Major government spending cuts have also loomed over the sector as Whitehall reduces spending on welfare and benefits.

In September Rok cleared its former finance director Ashley Martin after an investigation failed to uncover any evidence of malpractice on his behalf related to problems at its plumbing, heating and electrical unit.

The probe into the PHE unit showed the problems "were due to a scaling back of sub-contracting work from the private housing sector and a combination of weak operational, commercial and financial controls within that part of the business."

Rok's chief executive Garvis Snook had said at the time of Connaught's demise that Rok would be poised to pick-up some of Connaught's contracts to provide maintenance for homes run by local authorities throughout Britain.

Only last month Rok announced that it had won a £32m contract with the Scottish Government's economic and community development agency to provide design and construction services for the Highlands and Islands Enterprise.