Chief executive Garvis Snook says he feels 鈥檋ugely let down鈥� as he reveals 拢8.5m hole in accounts

Almost half the value of Rok鈥檚 business has been wiped out after it suspended its financial director following 鈥渟erious failings鈥� yesterday.

The firm鈥檚 shares tumbled 45% to 13p yesterday as Garvis Snook, chief executive of the firm, said he felt 鈥渉ugely let down鈥�.

He warned that there will be an exceptional cost of 拢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: 鈥淵ou end up making management decisions on numbers that are effectively made up.鈥�

The Financial Services Authority said it is seeking two pieces of information from Rok on the company鈥檚 processes, but has not said whether it is investigating. 

Amey鈥檚 former finance chief, David Miller, has been brought in to replaced the suspended Ashley Martin.

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