Rok reports £350m-worth of new deals in latest four months

In the first four months of 2009, Rok has secured 15 new framework agreements providing £350m in future revenues. The latest value is up from £240m figure for the comparable period in the first part of 2008.

As a result, Rok’s tally of secured orders and long-term framework agreements now stands at a total figure of £2.7bn which is ahead of the previous comparable figure of £2.3bn.

Secured and visible turnover for the current year are now in excess of 90% of consensus forecast turnover….. and in excess of 75% for 2010.

Garvis Snook, chief executive of Rok, was the first construction leader to warn of the impact of the economic crisis nine months ago. He trimmed the size and direction of Rok business while competitors continued to declare that all was well with construction’s future prospects.

The group’s latest trading covers the period 1 January 6 May.

Stephen Pettit, chairman, said this morning: "Overall we are pleased to report that trading in the first quarter is in line with our expectations and we are on course to achieve our expectations for the full year. 

"The actions the group took to shape the business in the last quarter of 2008 in recognition of the worsening economic climate are evident in our results to date.

“Building activity generally has now stabilised at the expected lower levels and we have a cost base aligned to these reduced volumes.

"Our response maintenance business is performing to plan and is continuing to gain market share in insurance repairs during what have been relatively benign weather conditions so far this year.

“Our national coverage delivered locally by directly employed maintenance technicians is pleasing existing customers and proving a compelling proposition for a number of new ones.  This is giving us the confidence to continue to invest further in the business.”

New long-term framework agreements with response maintenance customers won in the period include Wellingborough Homes (£24m), Leisure Connect (£10m), Hampshire County Council (£7m) and Bracknell Forest BC (£4m).

Rok’s new build general construction activities have been scaled back, particularly in the private sector.

“This enables us to be much more selective in the projects which we undertake without the need to chase volume in a highly competitive market,” said Pettit. “Our new build social housing business continues to grow.”

Pettit reported that Rok “is operating comfortably within its bank facilities” which are not due for renewal until 2012.