Trading update warns operating profit will be £2m below expectations
Rok has warned profits in its development division will be £2m below expectations at the end of the current quarter.
In a trading update, the company said operating profits for Rok Development have been dented by uncertainty in the credit markets.
It said: “Current issues affecting the credit markets have impacted institutional investors' confidence in the property investment sector, resulting in a fall off in demand as those buyers have been unwilling to commit in the current climate.”
It anticipated development profits will continue to be under pressure into next year, but said that a strong performance from its building and maintenance activities will cover the shortfall.
Rok had been performing strongly during the current period of uncertainty, with the company’s share price rising to a high of 238p at the end of August.
This morning’s announcement saw shares fall over 30p overnight, to a three-month low of 180p a share.