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Realistbear

Housing Company Rok Goes Bust As Cuts Begin

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http://uk.finance.yahoo.com/news/social-housing-firm-rok-calls-in-administrators-reuters_molt-7abbf93a74ea.html?x=0

LONDON (
Reuters
) - Building and social housing repairs firm Rok Plc said on Monday it would go into administration and trading in its shares was suspended.
"The board of Rok (LSE: ROK.L - news) plc announces that it has resolved to put the company into administration and to make an application to the Financial Services Authority to suspend the listing and trading of the company's ordinary shares," the company said.
Earlier this year Rok's rival Connaught (LSE: CNT.L - news) went into administration after it was hit by profit warnings. Major government spending cuts have also loomed over the sector as Whitehall reduces spending on welfare and benefits.

We shall no doubt see many more jobs lost in the private sector by way of collateral damage spewing out of the government job cuts. I find it quite odd that the government believe the civil service wallahs will simply transfer to the private sector and unemployment will not rise. Very odd indeed. :blink:

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Rok also did smaller/private contracts and insurance work - they recently did a deal with Axa (maybe house insurance claims work, not sure). Current environment - rocketing materials costs, high land prices (nothing economically viable to build on the plots), impending VAT rise, not looking good for the building sector regardless of the knock on effects of the public sector building cutbacks. Keeping prices bubbly is not going to help.

Edited by OnlyMe

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well this government is doing all it can to reduce the debt. if all this means lower house prices then i am all for it
Until you wake up one day to find your job or finances have gone down the pan!

House prices are unlikely to crash anyway, they seem remarkably robust. What's more likely is a slow slide in prices but they're not likely to drop by more than 15% - 20% max. The big fall in housing costs has been in mortgage repayments (for a lot of people) - that's where the crash has taken place, in overall house cost over the lifetime of the mortgage - worked out on current rates. But rates will start going up again at some point, so it's really just a snapshot in time.

I even saw an advert claiming that now was the best time to buy a house because interest rates were so low - but what about in 2 years' time?

Edited by blankster

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Rok are/were involved in contracting but their bread and butter was planned/reactive maintenance to both private and public sector.

They did do some development work but this was usually commercial, industrial and retail. They are NOT a housebuilder per se.

I know because I contracted for them for a few years.

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I even saw an advert claiming that now was the best time to buy a house because interest rates were so low - but what about in 2 years' time?

Yes but on this basis why would anybody ever buy a house EVER?

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We shall no doubt see many more jobs lost in the private sector by way of collateral damage spewing out of the government job cuts. I find it quite odd that the government believe the civil service wallahs will simply transfer to the private sector and unemployment will not rise. Very odd indeed. :blink:

Err...wtf has this got to do with spending cuts? Connaught went down the pan because of poor financial manangement and it wouldn't surprise me if the situation were the same with RoK!

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Rok are/were involved in contracting but their bread and butter was planned/reactive maintenance to both private and public sector.

They did do some development work but this was usually commercial, industrial and retail. They are NOT a housebuilder per se.

I know because I contracted for them for a few years.

Yes, any idea of their spread public sector / private sector - their collapse is being pinned on the public sector cuts, I don't think that is entirely correct as you say they had quite a brod spread in contruction/maintenance work.

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.... I find it quite odd that the government believe the civil service wallahs will simply transfer to the private sector and unemployment will not rise. ...

What on earth make you think the government believe that?

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We shall no doubt see many more jobs lost in the private sector by way of collateral damage spewing out of the government job cuts. I find it quite odd that the government believe the civil service wallahs will simply transfer to the private sector and unemployment will not rise. Very odd indeed. :blink:

Nothing, but nothing, has been actually cut yet - like Connaught plc it's much more likely to be a combination of bad management, poor cost control and a wider downturn in the housing market that's done for them.

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Suspended their CFO a while ago. Famous for providing questionable value services to local authorities. The era of the public sectors blank cheque book is now over. TF.

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Just posted on the Connaught thread that Rok recently announced that it had won a 32 million pound contract with the Scottish Government's economic and community development agency, wonder if they were paid up front, many will be thinking this cant happen but it can and does Leeds City Council have been hit for a few millions paying up front to Connaught, why councils do this is anybody's guess but they do.

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Yes, any idea of their spread public sector / private sector - their collapse is being pinned on the public sector cuts, I don't think that is entirely correct as you say they had quite a brod spread in contruction/maintenance work.

I think most of their maintenance stuff would have been public sector.

However, I think they got into trouble because basically that were a bit crap.

Some of the f wits that worked there when I left were simply unbelievably bad at managing construction projects. Their mainstream contracting in the area where I worked was frankly a disaster. Management was also quite arrogant that they were always right.

This failure is of no surprise to me.

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Just posted on the Connaught thread that Rok recently announced that it had won a 32 million pound contract with the Scottish Government's economic and community development agency, wonder if they were paid up front, many will be thinking this cant happen but it can and does Leeds City Council have been hit for a few millions paying up front to Connaught, why councils do this is anybody's guess but they do.

Connought and the like set up framework agreements with LA's or more often the new bodies that take over public sector housing, and are resposible for delivering decent homes works (new kitchens, baths etc) and maintenance.

I work as a consultant to 2 such contractors and in my opinion they are pretty useless. Part of the problem is a construction industry devoid of decent people. The industry has not trained in any volume for 20 years and so decent people are hard to find.

A lot of these frameworks had old LA stuff transfered to the new set up. To say thay have a different work ethic would be putting it mildly.

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A lot of these frameworks had old LA stuff transfered to the new set up. To say thay have a different work ethic would be putting it mildly.

Now that's genuinely interesting. Especially coming from an insider to the sector.

Are you telling us Connaught and Rok middle-management is (was) full of jobsworths moved over from council jobs? That would indeed be cause for concern! Is it different in Morgan Sindall and Mears?

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We shall no doubt see many more jobs lost in the private sector by way of collateral damage spewing out of the government job cuts. I find it quite odd that the government believe the civil service wallahs will simply transfer to the private sector and unemployment will not rise. Very odd indeed. :blink:

Lets face it, if government spending simply created private sector wealth, Scotland would have the most dynamic private sector of the UK given how much the govt spends there. Its doesnt. I'll bet what with all the council gyms, social clubs and everything else, many viable private gyms and social clubs and everything else are crowded out.

Why pay a private company for a service when the govt will provide it free at the point of delivery?

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Now that's genuinely interesting. Especially coming from an insider to the sector.

Are you telling us Connaught and Rok middle-management is (was) full of jobsworths moved over from council jobs? That would indeed be cause for concern! Is it different in Morgan Sindall and Mears?

It varies from area to area and contractor to contractor. But I was involved in trying to sort out a management structure for a private contractor who had landed the role of undertaking all public sector projects for a northern LA. All the management were then drafted across to work for the contractor. The contractor pretty much left them to it, wrongly thinking they could carry on and manage themselves. Wrong. They were totally lost. The head guy running the dept who was on a tidy sum for a LA employee was asked what the revenue stream was for the next 12 months along with the departments overhead costs for facilities and staffing. After a week he still did not know.

I was genuinely shocked that A: People like this were employed when clearly they are incompetant and B: that a private contractor thought they could sort themselves out.

I dont believe this is what happened to Rok and connought - as I said I think they were just crap, but they do take on LA workers/management under the framework TUPE agreement when the work is transfered.

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Now that's genuinely interesting. Especially coming from an insider to the sector.

Are you telling us Connaught and Rok middle-management is (was) full of jobsworths moved over from council jobs? That would indeed be cause for concern! Is it different in Morgan Sindall and Mears?

Mears are busy buying up as many home care providers as they can find; perhaps they think it will give them a foot in the door for all those kitchen/bathroom upgrades for the elderly and the disabled. They took £500 million in fees last year.

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It varies from area to area and contractor to contractor. But I was involved in trying to sort out a management structure for a private contractor who had landed the role of undertaking all public sector projects for a northern LA. All the management were then drafted across to work for the contractor. The contractor pretty much left them to it, wrongly thinking they could carry on and manage themselves. Wrong. They were totally lost. The head guy running the dept who was on a tidy sum for a LA employee was asked what the revenue stream was for the next 12 months along with the departments overhead costs for facilities and staffing. After a week he still did not know.

I was genuinely shocked that A: People like this were employed when clearly they are incompetant and B: that a private contractor thought they could sort themselves out.

I dont believe this is what happened to Rok and connought - as I said I think they were just crap, but they do take on LA workers/management under the framework TUPE agreement when the work is transfered.

So say Connaught / ROK go belly up and another firm takes over the contracts they have to take on/ transfer the same people who cocked up to the old company to the new one and **** that up .

no wonder we are in the mess we are

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http://www.telegraph.co.uk/finance/newsbysector/epic/rok/8116905/Rok-heads-for-administration-puts-5000-building-jobs-at-risk.html

Rok heads for administration, puts
5,000 building jobs at risk
Rok, the building and social housing repairs company, is to be placed into administration in a shock development that threatens 5,000 jobs.

Significant jobs loss--bad news for the workers and another nail in the HPI coffin. :( and :D

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My brother works for Rok. I got a call from him this morning to say that when he arrived at work this morning, employees were being turned away at the door by administrators, and not allowed onto the premisis. This was apparently a surprise to everyone, with even the most senior managers at that particulalr office location not informed of what was happening, and not allowed into the building.

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"The Board continues to have confidence that the Company will meet market expectations this year." 30 Sept.

Well lived up to my expectations in that they were crap and mismanaged.

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Well lived up to my expectations in that they were crap and mismanaged.

The directors were buying sizeable chunks of shares only a couple of weeks ago. Seems strange given what happened today. I can only guess that a bank pulled the plug.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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