Garvis Snook, chief executive of Rok, is on the hunt for more acquisitions, and has set ambitious targets for margins after the contractor posted record results.
Snook said he wanted to buy firms in the Midlands, south Wales and East Anglia. He said: “Since we started out our strategy in 2001 we have made three acquisitions a year. About 25% of our growth has been through acquisitions and I can see that continuing.”
ROK’s biggest acquisition last year was Scotland’s Tulloch Construction, which it bought for £31m .
Snook also wants to deliver improved margins. Rok Building, the company’s general contracting and maintenance arm, delivered an operating margin of 2.9% for the year ending 31 December. He wants to increase this to 3.5%.
Rok, is also looking to diversify its property investments, now centred on the commercial sector. Snook said: “Our investment in commercial property is unlikely to increase because it has reached its peak but we are looking to invest in social housing.”
Rok posted a 33% rise in pre-tax profit to £23m for the year ending 31 December and a 24% rise in turnover to £689m. Stephen Pettit, the chairman, said he was confident Rok would continue doing well this year.