-
Real estate news - going down like a Rok
"Rok heads for administration, puts 5,000 building jobs at risk"
Rok, the building and social housing repairs company, is to be placed into administration in a shock development that threatens 5,000 jobs
In a brief statement to the stock market, Rok, which was worth £450m in 2007, said it had asked the Financial Services Authority to suspend trading in its shares ahead of an administration. A further announce-ment is expected shortly.
Rok’s problems began in August when it suspended its finance director after finding “serious failings" in the financial reporting of its plumbing business. The warning wiped out more than half the value of the company.
However, in August, Rok lifted the suspension "immediately and without reservation".
It said a review of the business had concluded that problems in the division 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".
Earlier this year Rok's rival Connaught went into administration owing its bank lenders £215m after saying it had been hit by a sudden cutback in spending by several local authorities ahead of the government's budget cutbacks.
Source: Rok heads for administration, puts 5,000 building jobs at risk - Telegraph
---
In completely unrelated news I should start moving into new rented apartments this weekend...
Leave a comment: