Rok's profits tumble amid 'suicide-bid' claims
Rok has denied suicide bidding as it announces a halving of its operating profit in a year.
In results for the six months to 30 June, the social housing maintenance contractor has reported an operating profit of £4.5m, down from £8.9m a year ago.
Revenues have plummeted by more than £56m to £308.1m, while pre-tax profit has halved to £3m.
The company last week suspended its finance director Ashley Martin following underperformance in its plumbing, heating and electrical division.
The company said ‘serious failings in the financial controls’ of the plumbing, heating and electrical unit were discovered followed a review by independent accountants BDO.
Stephen Pettit, chairman of Rok, said: ‘The problems within PHE have been a regrettable chapter in Rok’s history.
‘Immediate and appropriate action was taken to the shortcomings in financial and operational control in this part of our maintenance and improvements operations as referred to in our recent trading update.’
The company has also denied speculation in the sector that ‘suicide-bidding’, where low bids are submitted to win contracts, was behind the firm’s troubles.
A Rok spokesperson said: ‘At no time has it ever been suggested by any reliable source that Rok puts in prices for its services that are unrealistically low.’