BIRMINGHAM: Building firm Rok’s results for the year ended 31 December 2009 showed a successful repositioning of business with increased focus on repairs and maintenance.
Operating margins increased on reduced activity levels, and the company secured what it termed a ‘market-leading position in property insurance repairs. The business has been restructured to enhance focus on key services.
Rok continued its success in securing new long-term framework agreements. There was also high forward revenue visibility with framework agreements at £2bn.
Commenting on the results and outlook, Stephen Pettit, chairman, said: “We have maintained our profit levels, despite reducing our revenues. This reflects the impact of our cost reduction programme as we shift our emphasis to the repair, maintenance and improvement markets.
“The board continues to be cautious on the overall outlook for our sector. The changes we have made in repositioning our business, I believe, illustrate the strength and flexibility of our company which bodes well for the resumption of Rok’s growth when the wider economy begins a sustainable recovery”.
Said chief executive, Garvis Snook: “There is no doubt the poor economic climate of the last 18 months created some of the most challenging trading conditions any of us can remember, particularly for our industry.
“In the last year we have shifted the focus of the group’s operations on to the more profitable and more resilient repair, maintenance and improvement markets as we believe they provide attractive growth potential for Rok.
“As a result our maintenance and improvement businesses now account for some 58% of revenues and 83% of profits from our businesses.”
