Rok's acquisitions enhance success

Rok's pre-tax profit doubled to £10m last year, proving that the vigorous acquisition strategy of chief executive Garvis Snook is paying dividends.
Following the acquisition - and successful integration - of Llewellyn, Rok signalled its intention to keep buying when it snapped up Ballast's four northern offices in 2003, having found little of interest in the remaining parts of the stricken group.
Rok's turnover in 2003 (12 months to 31 December) was £380m, well ahead of the £220m figure in the previous year.
Construction margins moved forwards. The former Llewellyn business has reported a 1.8% margin, well ahead of the initial 0.6% margin level. Parts of the original Rok group have moved higher, reaching a figure of 2.2%.
"The optimum in today's trading conditions is an overall margin figure of 3%," Snook said. "A number of our original companies are regularly making that, but it is a three-year process.
"Llewellyn has turned out very good performances. Ballast was different as we simply bought contracts and 129 of its former people, so there was not the same level of risk.
"The four ex-Ballast branches will eventually generate between £60m and £70m a year. They were doing more previously, but we are not turnover-driven," Snook said.