Saturday, February 21, 2009

Sol Construction in line with rest of Rok says Garvis Snook

Garvis Snook, chief executive of Rok. has said that Sol Construction is performing in line with the rest of the group.

Rok bought Sol in 2007. It's latest annual results show a profit margin of 1.8%.

Since the time of the acquisition there have been several shifts of emphasis. The set-up prior to acquisition in each of Sol’s offices was different:

Nottingham – was previously mainly a contracting operation with university clients throughout the Midlands

Warwick – did both general building and maintenance, particularly for breweries.

“At Warwick we have back-filled its existing work with additional maintenance work that Rok was doing in the area,” said Snook, “while at Nottingham we have added a maintenance capability.


Sol Construction in line with rest of Rok says Garvis Snook


“Right now Sol is in line with the rest of our business.”

Prior to acquisition, the bulk of Sol’s turnover came from construction where margins of 1.9% were in line with the industry average.

Snook has worked vigorously to transform Rok’s mode of operation, shying away from new build which he sees as a highly volatile sector.

Rok’s new build turnover ran to £550m in 2007 and has been halved since that time.

“Our [new build] budget for 2009 is £240m and we’ve got £220m of that,” he said. “In 2010 I don’t expect the figure to go beyond £200m.

“Groups with a big exposure in new build will struggle – we are already seeing seven or eight names on tender lists whereas a year ago there would have been just three or four.”

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