Building firm Rok makes loss after job cut costs
Building and repairs group Rok has reported a loss for the first half of the year, partly due to restructuring and redundancy costs.
Pre-tax losses were £3.8m, compared with a £6m profit a year ago. Revenue also fell, to £308.1m from £364.5m.
Earlier this month, the group suspended its chief financial officer after uncovering "serious failings" in financial and operational controls.
It warned then that profits would be well below forecasts.
Redundancy and restructuring cost the business £6.8m over the period, compared with £1m a year earlier.
The "serious failings" in financial controls occurred within the group's plumbing, heating and electrical division (PHE), and were uncovered by an independent review. When it announced the problems last week, Rok also said that its finance chief Ashley Martin had been suspended.
"The problems within PHE have been a regrettable chapter in Rok's history," said the group's chairman Stephen Pettit.
"The board and management are totally committed to rebuilding the strength of the business and delivering against expectations".
Mr Pettit also said the firm had a growing customer base, a strong order book and "significantly improved cash generation".
The Exeter-based company also reported a reduction in net debt, to £47.6m from £57m a year earlier.