Garvis Snook, chief executive of Rok, will halve turnover at the group’s building arm to fund a push into social housing.
Speaking after Rok announced strong results for the six months to 30 June 2008, Snook said the division’s £400m turnover would be cut by 50% as the group curbed its tendered contracting operation and sought more framework deals. Up to 200 staff will be relocated as part of the move.
In a further repositioning, he said the company would close its commercial development arm, which fell £2.7m into the red over the period.
Snook said: “Half of the £200m shortfall will be recovered by switching staff and resources into social housing and the other half will come from increased revenues in the repair and maintenance business.”
Over the half-year, turnover at Rok increased 22% from £10.2m to £12.4m on the back of a 37% jump in turnover from £399m to £547m.
New build turnover was up 26% from £228.7m to £288.1m while planned repairs and maintenance rose 55% from £128.2m to £198.9m. Response maintenance increased 42% from £41.9m to £59.7m.
The group said it would look to make further acquisitions but Snook hinted that the days of big deals may be over. He said: “There’ll be fewer and fewer larger deals; we now have 63 branches with quite a good geographical spread.
Over the next few years you’ll see us extend our plumbing, heating and electrical services.”