Building firm Rok makes loss after job cut costs

Image caption, Rok said it was committed to rebuilding the strength of the business

Building and repairs group Rok has reported a loss for the first half of the year, partly due to restructuring and redundancy costs.

Pre-tax losses were 拢3.8m, compared with a 拢6m profit a year ago. Revenue also fell, to 拢308.1m from 拢364.5m.

Earlier this month, the group suspended its chief financial officer after uncovering "serious failings" in financial and operational controls.

It warned then that profits would be well below forecasts.

Redundancy and restructuring cost the business 拢6.8m over the period, compared with 拢1m a year earlier.

'Regrettable chapter'

The "serious failings" in financial controls occurred within the group's plumbing, heating and electrical division (PHE), and were uncovered by an independent review. When it announced the problems last week, Rok also said that its finance chief Ashley Martin had been suspended.

"The problems within PHE have been a regrettable chapter in Rok's history," said the group's chairman Stephen Pettit.

"The board and management are totally committed to rebuilding the strength of the business and delivering against expectations".

Mr Pettit also said the firm had a growing customer base, a strong order book and "significantly improved cash generation".

The Exeter-based company also reported a reduction in net debt, to 拢47.6m from 拢57m a year earlier.