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Rok revises revenue expectations for 2009

Rok has “reassessed” its revenue expectations for the year ahead following reduced trading volumes in the last quarter of 2008.

The firm said that its regional contracting activities have been ‘significantly scaled back’ with visibility of over 80 per cent of 2009 total revenues.

Rok said the new build private sector market continues to be challenging, but that Government plans to fund more public sector projects should take effect in the second half of 2009.

Rok issued a profit warning in November after being hit by project deferrals and cancellations.

In a trading update today for the year to 31 December 2008 Rok said it expects trading to meet expectations.

Analysts are currently forecasting a drop in pre-tax, pre-exceptional profit to £23.8 million from £31.7 million last year.

Rok’s restructuring programme, announced last November, has now been completed with over £20 million of costs having been removed from the business.

Year end net debt is £44 million, which bosses said is in line with expectations.

The trading update said: “Rok's national capability combined with local delivery has helped to secure a further £875 million of long term framework agreements during 2008 bringing the total value of expected future revenues to £2.3bn, up from £1.7 billion in 2007.

“These frameworks are principally in social housing, education, airports and the insurance sectors.

“There is continuing growth in new framework opportunities with the total value being bid of £2.4 billion.

“The confirmed forward order book at the year end stands at £400 million, compared with £590 million in 2007 reflecting the planned reduction in our new build contracting activities.”

Rok will report its results for the full year ended 31 December 2008 in March.

Further Reading:

Rok wins £11m Highland contracts – click here