Contractors interested in profitable parts of Rok business but administrator wants to sell as single entity
More than 50 companies have expressed an interest in acquiring all or parts of collapsed contractor Rok’s business.
It is understood a number of contractors are interested in “cherry picking” Rok’s profitable businesses, encompassing its social housing, contracting and insurance response services, but sources close to Rok’s administrators said the priority was to see all parts of the business sold as a single entity.
The source said: “You achieve better rates when selling large proportions of a business to a single buyer so there is a need to prioritise securing a bigger deal. If bigger players don’t want all of the company then you look at selling off on a divisional basis or if needs be even an office basis.”
Mears has already expressed an interest in taking on Rok’s social housing division although it is understood Leadbitter and Kinetics are also in discussions with the administrator.
Insiders expect an announcement on the future of the business this week.
The source added that Rok’s profit warning in August was “pivotal” to its collapse. He said:“It meant credit got tighter for the company and led to a dip in confidence among clients. Against the backdrop of the current economic uncertainty and dips in public sector work, which accounts for 55% of group turnover, things spiralled down quickly. September’s turnover was 30% off budget.”