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Rok rolls out record results as it goes for growth
BUILDING and maintenance firm Rok delivered record results yesterday and said it was expecting good progress and acquisitions as customers choose to "make do and mend" at a time of economic slowdown.
Rok, which describes itself as the nation's local builder, made three Yorkshire acquisitions last year as the industry became less fragmented.
Garvis Snook, the company's chief executive, said consolidation was being driven by extra regulations, skills shortages and outsourcing decisions by Government and local coun- cils.
He added: "This environment provides a significant opportunity for Rok to continue to expand its business model across the UK, through the selective acquisition of businesses that are committed to our local builder strategy."
During 2007, revenues increased 38 per cent to 950.1m, pre-tax profit grew 42 per cent to 28.3m and basic earnings per share rose 21 per cent to 11.5p.
Rok employs 430 staff in Yorkshire after buying construction business S Harrison, based in Malton, North Yorkshire, plumbing, heating and electrical services firm Avonside, from Hull, and Rotherham-based specialist trades services firm EMB last year.
Rok's major projects include the refurbishment of Huddersfield Town Hall, a housing scheme in Rotherham and work on children's centres in Wakefield and Kirklees, in West Yorkshire.
Mr Snook said: "Much has been made in the media of economic tightening affecting the construction sector in 2008. Speculative residential house builders are already feeling the effects and in time it will affect demand for large capital projects, principally in the private sector.
"History shows that in such slowdowns demand increases for repair, refurbishment and maintenance services as customers make do and mend rather than replace or move. It is in just such conditions that Rok's strategy was designed to excel."
Mr Snook said trading conditions in the commercial property market continued to be difficult. Having started to reduce its investment in this sector in January 2006, Rok said it now planned to switch more funds into further corporate acquisitions.
Rok said it had a record confirmed order book of 610m, up 17 per cent on 2006.
The board is recommending a final dividend for the year of 2.35p per share, resulting in a total dividend for the year of 3.40p, an increase of 21 per cent on 2006.
Martin Donnachie, Rok's managing director for the North of England, said: "I am sure 2008 will see us enhance our role as the nation's local builder, as we continue to look to the public sector and framework opportunities in the region."
London-based Rok entered Yorkshire in 2005 when it bought Lemmeleg, the Wakefield firm co-founded by Yorkshire Forward chairman Terry Hodgkinson, for 1.7m.
Rok was founded in 1939 when a number of smaller businesses amalgamated as Exeter Building Company to take on larger projects being issued by the government.
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