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Trading update

Rok has issued its latest trading update.

As required, Rok has issued a statement on its performance ahead of announcing the year end results which will be available on March 9. A full version of the statement can be found on the Investor Relations pages of this website.
According to the statement, Rok's response maintenance operations continue to perform well with improved efficiency making up for the reduced demand for insurance repairs because of benign weather conditions last year.

Margins also remain healthy in planned maintenance activities. Social housing improvement remains a strong market and Rok has a significant order book for repair and maintenance work. Its plumbing heating and electrical (PHE) businesses have been integrated successfully and further opportunities are expected for for the teams in 2010.

The new build regional contracting market remains challenging and will not be helped by the expected cut backs in public sector spending. Rok's decision to scale back these activities in 2009 means it can be more selective in the projects undertaken so margins have held up relatively well. Social housing new build activity recovered after a slow start.

Forward revenue visibility under secured orders and framework agreements continues to be healthy at £2.0bn (2008:£2.3bn). Secured and visible revenues for 2010 are 83% of consensus forecasts.

A revised national operating structure is now in place which has enabled further cost rationalisation to take place in 2009. Whilst the new financial year will continue to be challenging for new build capital projects, the change in business mix is mitigating its impact and we are ready to harness the opportunities that 2010 will inevitably present.

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