ROK Rok

 

TIDMROK 
 
RNS Number : 2970F 
Rok PLC 
11 January 2010 
 

 
 
 
 
Date: 11 January 2010 
On behalf of:      Rok plc ("Rok") 
Embargoed until:    0700hrs 
 
 
Rok plc 
Trading Update 
 
 
 
 
Rok plc, the property repair and maintenance specialist, is pleased to 
provide the following trading update ahead of the announcement of results for 
the year ended 31 December 2009. 
 
 
Further to our Interim Management Statement on 5 November 2009, the Board 
re-confirms that trading for the year to 31 December 2009 is expected to be in 
line with its expectations. 
 
Rok's response maintenance operations continue to perform well. Our focus on 
margins through improved operating efficiency has mitigated the impact of 
reduced insurance claims due to benign weather conditions in 2009.  The market 
for response services is largely unaffected by the current economic climate and 
we are continuing to gain new customers and take an increased share of existing 
customers' spend. 
 
 
Our planned maintenance services have performed in line with our expectations 
with margins remaining healthy. Social housing improvement, where we are active 
on 38 frameworks across the UK, remains a strong market for us and we have a 
significant order book ahead for repair and maintenance work.  Our plumbing 
heating and electrical (PHE) businesses have been successfully integrated and we 
expect further opportunities in 2010 in this activity. 
 
The new build regional contracting market remains challenging and the expected 
cut backs in public sector capital spend will, we believe, serve to exacerbate 
this in 2010. Our decision to scale back these activities in 2009 is therefore 
enabling us to be more selective in the projects we undertake and, as a result, 
margins have held up relatively well.  Social housing new build activity, where 
we are active on 35 frameworks, recovered well after a slow start to the 
year assisted by the activities of the Homes and Communities Agency. We continue 
to secure a number of long term frameworks for new build social housing 
including recent contracts with Home Group Scotland, and YORbuild, totaling 
GBP34m, which will further underpin revenues into 2010 and beyond. 
 
 
We have recently been appointed as the preferred service provider as part of the 
Inspiral Consortium on the Oldham Gateway's Private Finance Initiative. This 
project is expected to be worth GBP110m for new build, planned repairs and 
response maintenance over 25 years and demonstrates the value of Rok's 
integrated service model. 
 
We continue to focus on reducing net debt levels which have improved 
significantly since the half year despite the change in business mix. The 
Company continues to make progress with the disposal of its remaining 
Development assets in a very challenging market. 
 
 
Our forward revenue visibility under secured orders and framework agreements 
continues to be healthy at GBP2.0bn (2008:GBP2.3bn). Secured and visible 
revenues for 2010 are 83% of consensus forecasts. 
 
 
A revised national operating structure is now in place which has enabled further 
cost rationalisation to take place in 2009. Whilst the new financial year will 
continue to be challenging for new build capital projects, the change in 
business mix is mitigating its impact and we are ready to harness the 
opportunities that 2010 will inevitably present. 
 
 
Rok will be announcing its preliminary results on 9 March 2010. 
 
 
 
 
Enquiries to: 
 
 
+--------------------------------------------+-------------------------------------------+ 
| Rok plc                                    | www.rokgroup.com                          | 
+--------------------------------------------+-------------------------------------------+ 
| Garvis Snook, Group Chief Executive        | Tel: 020 7977 7982                        | 
| Ashley Martin, Group Finance Director      | Tel: 020 7977 7984                        | 
|                                            |                                           | 
+--------------------------------------------+-------------------------------------------+ 
| Redleaf Communications Ltd                 |                                           | 
+--------------------------------------------+-------------------------------------------+ 
| Emma Kane/Kathryn Hurford/Rebecca          | Tel: 020 7566 6700                        | 
| Sanders-Hewett                             | rok@redleafpr.com                         | 
|                                            |                                           | 
+--------------------------------------------+-------------------------------------------+ 
 
 
 
 
Notes to Editors: 
 
 
 
 
  *  The Group specialises in low risk, relationship based provision of building 
  services on a national basis and undertakes Maintenance and building 
  improvements; Social housing (new build and planned repairs); Plumbing, heating 
  and electrical services; and Construction.  Most of these services are delivered 
  directly using Rok's own trades people. 
 
 
 
  *  Further information on the Group can be accessed at www.rokgroup.com 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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