The development arm of Rok will miss its profit target for the year because of the slowdown in the property investment market.
In a statement to the Stock Exchange this morning, Rok said that operating profits from Rok Developments will be £2m lower than market expectations for the year ending 31 December, and that profits will continue to be ‘under pressure’ in 2008.
Rok’s shares dropped 10% to 189p in preliminary trading.
Fall off in demand
‘Rok Development is continuing to experience good demand from occupiers,’ Rok said.
‘However, the current issues affecting the credit markets have impacted institutional investors' confidence in the property investment sector resulting in a fall off in demand as those buyers have been unwilling to commit in the current climate.’
Rok said that it would meet its overall profit target because trading in its building and maintenance divisions are ahead of expectations.