Financial Times

Rok heads for 1bn turnover
By Philip Stafford

Published: August 15

Rok, the construction, maintenance and development group, is set to record 1bn of annual turnover after a bumper set of interim results.

The group, which operates a network of local builders, said its order book was up 50 per cent on 2006 levels at 550m.

Garvis Snook, chief executive, said the interim figures had demonstrated better progress than in any previous report since the inception of Rok in 2001.

"These results prove the model works and generates better and better returns," he said.

He added he was "very comfortable" with analysts' forecasts that full-yearturnover would top 1bn.

Revenue climbed 44 per cent to 434m in the six months to June 30 while pre-tax profit increased from 6.4m to 11.2m, thanks in part to last year's acquisition of Tulloch Construction for 31.3m.

Like-for-like sales rose 20 per cent, driven by contracts in social housing and education. Overall, the company won 630m of social housing contracts in the past 12 months.

Earnings per share rose 45 per cent to 4.5p while the interim dividend is lifted 22 per cent to 1.05p.

Mr Snook said productivity levels had been hit by the poor summer weather but that Rok would pick up repair and rebuilding work in England via its contracts with insurance groups such as Royal & Sun Alliance, Lloyds TSB and Zurich.

The shares rose 20p to 215p yesterday.

Copyright The Financial Times Limited 2007

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