HIE Comment in response to Rok Announcement
8th November 2010
Highlands and Islands Enterprise has been in contact with Rok's administrators, Pricewaterhouse Coopers (PwC). We are seeking an early meeting with PwC to discuss both the future of the business as a whole and how we progress specific HIE projects currently being delivered by Rok.
Our priority is to ensure that projects in HIE's Operating Plan, including Arnish, Raasay House and Machrihanish will be completed despite this setback.
The HIE Property Framework Contract which Rok was awarded earlier this year was set up to provide a single contractor which would undertake the majority of HIE's construction needs over the next four years.
Two projects have been awarded so far, though neither has yet begun. These are phase one of the European Marine Science Park at Dunstaffnage, near Oban (valued at £7.5m) and recladding industrial buildings at Arnish Point, Stornoway (£3m).
In addition, two further projects awarded to Rok under a previous HIE contract are currently under way: the rebuilding of Raasay House (£8m) and site works at the renewable energy manufacturing plant in Machrihanish (£4.9m)
Background
Building services company Rok had reported £3.8m half-year loss after problems in its plumbing, heating and electrical arm.
The board of building services company Rok said today that it would place the firm into administration just months after it revealed sizeable losses and financial shortcomings at its plumbing division.
The company won a recent contract win with insurance giant Axa and Exeter-based Rok, which employs more than 2,000 tradespeople, said it would place the company into administration and had applied to the Financial Services Authority to suspend the listing of its shares.
Rok, reported half-year losses of £3.8m a few months agao, shortly after an independent review by accountants BDO uncovered serious failings at its plumbing, heating and electrical (PHE) business.
Garvis Snook the chief executive took over the running of the firm in 2000, when it was known as Exeter Building Contractors (EBC).
The company was losing money and had a pension deficit. By 2007Mr Snook had changed the fortunes of the company. He took the company's market value from £7m (as EBC) to £322m. Rok deals with a wide range of services from general repairs to medium-sized construction, and has about 30 regional bases.
Related Businesses
Related Articles
The much-anticipated return of the funicular railway at Cairngorm Mountain will not take place in December, as had been hoped. Contractor Balfour Beatty has substantially completed an extensive remediation programme to strengthen the 1.8km viaduct, however detailed inspections have shown that further work is required in some areas.
A sand mining company in Lochaber is set to double its production and increase annual turnover by more than £2.6m. Lochaline Quartz Sand Limited (LQS) has secured up to £230,000 investment from Highlands and Islands Enterprise (HIE) towards the £855,000 costs of upgrading equipment on site.
The newly appointed head of business growth for Highlands and Island Enterprise (HIE) in Argyll and the Islands is to focus on expanding the agency's portfolio of business clients. Liam Orr, originally from Benderloch near Oban, took up the post in early December and leads HIE’s business growth team across an area covering Argyll and Bute, Arran and the Cumbraes.
An Aviemore-based adventure tourism operator has made significant progress in sustainability over the past two years by investing in e-bikes, e-vehicles and a carbon labelling system. Wilderness Scotland has reduced its scope 1 & 2 carbon emissions by 16 percent through its commitment to business decarbonisation.
The funicular railway at Cairngorm Mountain looks set to be back in action towards the end of December or early in the new year. Contractor Balfour Beatty has confirmed that, weather permitting, its current programme of remediation works on the viaduct that supports the railway is due to finish in the next week to 10 days, after which teams working for the company plan to demobilise from the mountainside.
Fetcha Chocolates is investing in new equipment to quadruple its capacity, increase turnover and create employment. An Argyll based chocolate manufacturer is investing in new equipment to quadruple its capacity, increase turnover and create employment.
Is your young business ready for the next step?. The Young Business Capital Grant helps young businesses and social enterprises (under 5 years old) invest in projects that stimulate growth.
Shell-volution is an ambitious industry-wide initiative supported by the public sector and the University of the Highlands and Islands (UHI) which has been awarded £4.4 million of investment from the UK Government as part of the Islands Growth Deal. This innovative, ground-breaking project is set to transform shellfish aquaculture, bringing sustainable growth and additional quality jobs in mussel farming, based on detailed investigations (mapping and monitoring) and creating a model for improving security and reliability of wild spat recruitment, through industry best practice.
A Nairn-based foundry, which has achieved international recognition for its larger-than-life bronze castings has invested in a £200,000 expansion to help it reach greater heights. An award of £60,000 from Highlands and Islands Enterprise (HIE) has helped Black Isle Bronze to improve infrastructure and purchase equipment to extend the range of projects the firm can undertake.
Young businesses and social enterprises in the Highlands and Islands looking to increase productivity, innovation and employment can apply for funding from HIE. The fourth round of the Highlands and Islands Enterprise (HIE) Young Business Capital Grant (YBCG) is now open to businesses that have been trading for less than five years with up to 250 full-time equivalent employees.
