Chief executive Garvis Snook says he feels ’hugely let down’ as he reveals £8.5m hole in accounts
Almost half the value of Rok’s business has been wiped out after it suspended its financial director following “serious failings” yesterday.
The firm’s shares tumbled 45% to 13p yesterday as Garvis Snook, chief executive of the firm, said he felt “hugely let down”.
He warned that there will be an exceptional cost of £8.5m in the next set of accounts and added that Rok will have to restructure its plumbing, heating & electrical business, which is where the problems occurred.
It is understood that BDO Stoy Hayward, which was brought in to conduct a review, discovered that costs were not being recognised until long after completion of contracts, while revenues were being booked at price levels housebuilders would not then pay.
Snook said: “You end up making management decisions on numbers that are effectively made up.”
The Financial Services Authority said it is seeking two pieces of information from Rok on the company’s processes, but has not said whether it is investigating.
Amey’s former finance chief, David Miller, has been brought in to replaced the suspended Ashley Martin.