Building services firm Rok revealed sizeable losses today as it counted the cost of job losses and restructuring at its troubled plumbing division.
The group recorded half-year losses of £3.8 million in the six months to June 30 and said shortcomings in financial and operational controls at the division represented a “regrettable chapter” in the company’s history.
Rok warned in April that profitability at the plumbing, heating and electrical business (PHE) had been hit by a number of underperforming contracts.
It carried out a restructuring and terminated the troublesome contracts before calling in accountancy firm BDO to conduct an independent review.
Rok, which last week announced the suspension of chief financial officer Ashley Martin, said BDO found serious failings in financial controls at PHE.
The Exeter-based company has insisted the problems at PHE were isolated and added today that its overall order book of £435 million reflected good momentum in its social housing and construction divisions.
It added that revenues visibility in its maintenance and improvements business, which now houses the PHE operation, was good.
Group revenues for the half-year fell to £308.1 million from £364.5 million, while operating profit was down to £4.5 million from £8.9 million before taking into account the £6.8 million impact of restructuring the PHE business.