INDUSTRY NEWS

Rok drops commercial property arm

Development contractor Rok is to withdraw its commercial property arm and lessen its exposure to the market.

The firm reported a healthy 22 per cent interim profit and said it was confident of a "satisfactory outcome" for the year.

Sales were up 37 per cent and the company’s board said it had achieved "strong organic growth in core activities"

Chairman Stephen Pettit says by closing the arm, it "gives us confidence that there will be no further adverse financial impact from this operation".

"Overall we are confident of a satisfactory outcome in the current year from our core building and maintenance activities," he added.

New development schemes are increasingly finding it difficult to secure funding from investors worried the market still has some way to drop.

According to HBOS, orders for house building have fallen 33 per cent and commercial property 38 per cent.
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