Bosses buy at Rok bottom

Aug 17, 2010

Share with
friends:

Comments (0) Print this article

The chairman and chief executive of building services firm Rok have taken advantage of the share price slump to buy shares following the release of interim figures.

Rok shocked the market less than one week ago when it revealed problems with its plumbing, heating and electrical business. The group finance director was suspended.

At one-stage the share price had slumped by one-third following the trading statement but there has been a small recovery following the interim results.

Chief executive Garvis Snook has invested just over £50,000 on acquiring 250,000 shares. That takes his shareholding to 966,084 shares.

Snook paid 20.25p a share but chairman Stephen Pettit managed to buy his 25,000 shares at 20.2p a share. Pettit owns 80,326 shares.

The buying comes at a time when Lloyds Banking, Standard Life and the BT Pension Scheme have been reducing their holdings.

Pre-tax profit in the half year to June 2010 fell to £3m from £6m, as revenues dropped to £308.1m from £364.5m. Full year profit will be below expectations because of the problems at the plumbing, heating and electrical division.

Rok has focused on good margin work in the construction division and, although the profit is small, it is the only part of the group to improve its contribution. The contribution from social housing was down but it has a strong order book.

Rok has reduced its interim dividend from 0.75p to 0.5p a share.

Panmure Gordon remains a seller after the latest figures. It says that Rok needs to reassure investors that the problems are specific to one division.

Top Director Buys

Babcock International (BAB) Director name: Mr John Rennocks Amount purchased: 17,000 @ 521.50p Value: £88,655

ROK (ROK) Director name: Mr Garvis Snook Amount purchased: 250,000 @ 20.25p Value: £50,625

National Grid (NG.) Director name: Mr John Allan Amount purchased: 4,700 @ 530.42p Value: £24,930

ROK (ROK) Director name: Mr Stephen Pettit Amount purchased: 25,000 @ 20.20p Value: £5,050

Comments (0)

Share with
friends:

Related articles

Leave a comment

This will be the name displayed with your comment.

This helps us verify comments are genuine. It will not be displayed anywhere on the site and is stored confidentially.

Please keep your comment within 1,000 characters and relevant to the main topic. We encourage healthy debate, but we don't allow insults or bad language. Anything off topic or unpleasant, we'll remove. Enjoy the conversation! Thank you.

captcha To prevent spam-related comments please enter the characters shown in the 'Captcha' box to the left.

By leaving a comment you accept our terms and conditions.


FREE - MoneyWeek's daily investment emailJohn Stepek

Our free daily email, Money Morning, is an informative and enjoyable analysis of what's going on in the markets. Written by our Editor, John Stepek, and guest contributors.
Sign up FREE to Money Morning here.

>