Rok suspends CFO for failings in financial controls
By Chris Sleight12 August 2010
UK-based maintenance and building group Rok has suspended its CFO, Ashley Martin after an independent review showed serious failings in financial controls at its Plumbing Heating & Electrical (PHE) division.
The company had announced in April that the profitability of the PHE business was a problem due to under-performing contracts. It subsequently terminated these contracts and restructured the business, however, Rok says its financial performance continued to disappoint.
It appointed auditing and accounting company BDO to conduct an independent review, and it was this that highlighted poor controls and confirmed the full extent of PHE's problems.
A statement from Rok said, "The PHE business has significantly under-performed relative to expectations and will not make a contribution to group profit this year. The board therefore anticipates that this will have a material adverse impact on Group profit for the year to 31 December 2010."
Rok has appointed David Miller as interim CFO. Mr Millar specialises in such positions, and has experience of the construction industry with contractor Amey (now part of Ferrovial), where he was CFO between 1998 and 2002.
Aside from the problems at the PHE business, which were reflected in a UK£ 6,8 million (€ 8 million) redundancy and restructuring charge in Rok's accounts for the first half of the year, the company said it was in a good position, with a solid order book, good cash generation and low debt.