Rok interim profits drop 50% after accounting trouble
Operating profit for the first six months of the year down to £4.5m after financial controls failing
Financial control problems at repair and maintenance group Rok have resulted
in a halving of interim profits, according to the company.
Results for the six months to 30 June showed operating profits at £4.5m down
49% on the same period last year, after the company uncovered “serious failings
in the financial controls” of its plumbing, heating and electrical (PHE)
business.
Announcing the results, Rok chairman Stephen Pettit, said: “The problems
within PHE have been a regrettable chapter in Rok’s history.”
PHE is not expected to make any contribution to the full-year profits of the
group and an organisational restructure of the division is likely to result in
redundancies.
Earlier this month, FD Ashley Martin was suspended following a review of the
PHE business by BDO.
Further reading:
Rok FD suspended amid ‘failing’ financial controls