Between Rok and a hard place

Exeter-based Rok, which employs 153 people at its Edgehill Drive offices, announced on Monday it had applied to suspend trading on the stock exchange.

The construction firm, which carries out repairs, maintenance and building projects for public and private sector organisations including councils, schools, housing associations, insurance customers, employs around 3,800 people nationwide and in the six months to 30 June 2010 had turnover of £308 million.

It bought Coventry Road-based Sol Construction for £19m in 2008 and moved to Tournament Court in March.

The company provides repairs and maintenance for Warwick District Council and Warwickshire County Council, including housing, schools and offices.

Administrators Pricewater -houseCooper announced early in the week that staff who continued to go to work would still be paid and council officials said work would still be done.

Craig Roberts, maintenance and minor works group manager for Warwickshire County Council, said: “We are in daily contact with Rok which has the reactive maintenance contract for county council buildings in the central area of Warwickshire.

“We are briefed each day on Rok’s ability to trade and, if they are able to operate, the council will honour its contractual obligations.

“If Rok is unable to carry out any reactive maintenance, we would immediately seek an alternative contractor for that piece of work.

“For any outstanding planned work in progress, this has currently been put on hold. Dependent upon the outcome , outstanding reactive and planned work with Rok will be identified and completed either by continuing to use Rok or by sourcing alternative providers.”

Rob Hunt, Mike Jervis and Jeremy Webb of PricewaterhouseCooper were appointed joint administrators of Rok Plc and Rok Building Limited on Monday.

Mr Jervis said: “In response to changes in market conditions, Rok Plc had taken a number of steps to improve operations and to develop a sustainable and profitable business going forward.

“But due to difficulties in meeting the company’s financial obligations, the company and certain subsidiaries have been placed into administration to protect the business and assets.

“Our immediate priority is to urgently review the financial position of the company and seek a buyer of the businesses. “We will work with the existing management team, employees, suppliers and customers to try and ensure that we achieve a positive solution. Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal. We will provide further updates throughout the coming weeks.”

PricewaterhouseCooper has set up an advice line for staff to make enquiries. Call 0844 2570868.