Contractor reduces exposure to sector as it reports 22% interim profit rise

Contractor Rok has reported a 22% rise in first half pre-tax profit but announced it will close its commercial property arm.

The builder posted profits of £12.4m for the six months to 30 June and revenue of £546.7m, up 37% on 2007.

It said it was confident of a “satisfactory outcome” for the year in its core operations due to record framework agreements and order book.

But it said it would close its property arm to reduce its exposure to the tough climate in the commercial property sector.

Chairman Stephen Pettit said: “We have planned for the period ahead and taken the necessary steps to ensure that Rok is well positioned to prosper. The visibility of our revenues is stronger than at any time in the group's history and our framework agreements stand at record levels.

“Overall we are confident of a satisfactory outcome in the current year from our core building and maintenance activities. The board believes the group is well placed to succeed in these more challenging economic times.”