Interim Management Statement


 

TIDMROK 
 
RNS Number : 9949B 
Rok PLC 
05 November 2009 
 

Date: 5 November 2009 
On behalf of: Rok plc ("Rok") 
Embargoed until:07.00hrs 
 
 
 
 
Rok plc 
Interim Management Statement 
 
 
Rok plc (LSE: ROK), the property repair and maintenance specialist, today issues 
its Interim Management Statement, published in accordance with the UK Listing 
Authority's Disclosure and Transparency Rules, covering the period 1 July 2009 
to 4 November 2009. 
 
 
Overview 
 
 
We are pleased to report that overall the group is trading in line with our 
projections and that forecast full year results are in line with our 
expectations. 
 
 
2009 has been a year of continued progress and transition for Rok.  In line with 
our strategy, we have adjusted our business mix in favour of higher margin, 
lower risk planned and response maintenance projects and new build social 
housing. This is against a backdrop of a tightening UK economy and significantly 
reduced demand for new build general construction projects, an area in which we 
have scaled back activity significantly.  Our focus remains on maintaining 
operating margins rather than volumes which, in an increasingly competitive 
market, we believe will stand us in good stead as the economy recovers. 
 
 
We continue to be successful in securing new framework agreements having won 48 
new appointments this year totalling over GBP700m which is providing a 
substantial underpin to future revenues. Our total forward revenue visibility 
under secured orders and long term framework agreements now stands at GBP2.1bn, 
level with the previous year.  Secured and visible revenues for 2010 are now 
some 80% of our forecast revenues. The future framework pipeline is also strong 
at GBP1.6bn. 
 
 
Response Maintenance 
 
 
Our response maintenance business is performing well despite it being a year of 
reduced weather related insurance claims, which has curtailed revenue growth in 
the current year to date.  As a result of the investments we have made in recent 
years across this division, our margins are improving and we are capturing an 
increasing proportion of customer's spend.This is helping us to consolidate our 
position as the number one provider of property insurance repairs in the 
UK market. 
 
 
Our recent appointment by Liverpool Victoria (LV=) to handle their domestic 
insurance repairs on a 3 year framework contract is testament to the high levels 
of service we are providing to our customers.  We have also secured long term 
contracts with St Albans City & District Council, North Wales Housing 
Association, Home Group and Bromsgrove District Housing Trust which will benefit 
revenues in 2010. 
 
 
Planned Maintenance 
 
 
Rok's planned maintenance activities, which include general building 
improvements, social housing refurbishment and plumbing, heating & electrical 
services (PHE), are also performing to plan.  Our focus on maintaining margins 
in what is now a more competitive environment is proving successful. 
 
The market for planned maintenance services continues to favour the major 
suppliers such as Rok who are better resourced to provide an integrated 
outsourced service to customers more efficiently.  New customer wins in recent 
months include Sanctuary Housing, City West Housing Trust and Yorkshire Housing 
Group. 
 
 
Our Plumbing, Heating & Electrical business, formed from a number of 
acquired companies and existing in-house teams, has now been successfully 
integrated into the Group, providing a solid platform for future growth as we 
expand the operations across the UK. 
 
 
New Build 
 
 
Our positioning in the new build social housing market has strengthened 
following the acquisition of Richardson Projects in 2008.  Whilst a number of 
our customers are still constrained in their ability to commence projects, we 
are continuing to win a number of new build frameworks which will underpin 
revenues for the years ahead.  We have also been shortlisted on three major 
housing PFI projects, for work across all of our business streams, each 
involving long-term revenues in excess of GBP100m. 
 
 
In recent months we have been appointed on long term frameworks by NHS Lothian, 
Scottish Water, Firebird JVC, and The University of Salford. 
 
 
Debt 
 
 
Our underlying average net debt is reducing and the Group is operating 
comfortably within its bank facilities which are not due for renewal until 
2012. 
 
 
Outlook 
 
 
From 2010, our business will be organised around four national business teams: 
 
 
  *  Maintenance  (to include improvements) 
  *  Social Housing (to include new build and planned repairs) 
  *  Plumbing Heating & Electrical (PHE) 
  *  Construction 
 
This structure will bring further efficiencies in costs and greater 
opportunities for growth through a consistent national approach. 
 
 
Having taken decisive action over the past year to align our cost base with 
expected levels of revenue in an increasingly challenging operating environment, 
our resulting business mix puts us in a strong position to resume growth as the 
economy recovers.  With a high proportion of our future revenues underpinned by 
long-term agreements with customers, we remain confident about the Group's 
prospects for the year and beyond. 
 
 
Other than the information contained in this Interim Management Statement, there 
have been no material events or transactions in the period from 1 July 2009 to 4 
November 2009 which have affected Rok and its financial position. 
 
 
- ends - 
 
 
Enquiries to: 
 
 
+----------------------------------------------+--------------------------------------------------+ 
|                       Rok plc                |                       www.rokgroup.com           | 
+----------------------------------------------+--------------------------------------------------+ 
|                       Garvis Snook, Group    |                       Tel: 020 7977 7982         | 
|                       Chief Executive        |                       garvis.snook@rokgroup.com  | 
+----------------------------------------------+--------------------------------------------------+ 
|                       Ashley Martin, Group   |                       Tel: 020 7977 7984         | 
|                       Finance Director       |                       ashley.martin@rokgroup.com | 
+----------------------------------------------+--------------------------------------------------+ 
|                       Redleaf                |                       Tel: 020 7566 6700         | 
|                       Communications Ltd     |                       rok@redleafpr.com          | 
|                       Emma Kane/Rebecca      |                                                  | 
|                       Sanders-Hewett/Kathryn |                                                  | 
|                       Hurford                |                                                  | 
+----------------------------------------------+--------------------------------------------------+ 
|                                              |                                                  | 
+----------------------------------------------+--------------------------------------------------+ 
Notes to Editors: 
 
 
  *  Rok plc's shares are listed on the Official List of the London Stock 
  Exchange under the symbol ROK. 
 
 
 
  *  The Group specialises in relationship based service delivery providing building, 
  repairs and refurbishment, and response maintenance services that are tailored 
  to local needs and customers' wishes supported by the resources and expertise of 
  one of the industry's leading players. 
 
 
 
  *  Rok is one of the UK's leading providers of services to the social 
  housing sector. 
 
 
 
  *  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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