Rok enters administration
By Chris Sleight08 November 2010
UK residential contractor ROK has put itself into administration. The move comes three months after the company announced problems due to poor financial controls at its plumbing and heating division.
In a brief statement to the London Stock Exchange, the company said it had entered administration, and that trading in its shares had been suspended. It is believed the company had run into difficulties in meeting its financial obligations.
In August, it suspended its CFO, Ashley Martin when losses and poor financial controls were uncovered at its plumbing division. However, he was reinstated after an internal investigation, "immediately and without reservation," when the problems were found to be linked to the scaling back of sub-contracting work in the private housing market, along with weak management controls.
Although he was fully cleared of any wrongdoing or failings, Mr Martin subsequently resigned from the company.
Rok is not the first company in this sector to become insolvent. September saw one of its competitors, Connaught enter administration with debts that now look like they could be as high as UK£ 100 million (€ 115 million).