Rok, the listed building, maintenance and development company, is to reduce its exposure to commercial property.
The company said today that Rok Development, its smallest division accounting for 10% of profits, would do fewer schemes ‘as it will be difficult to achieve our required returns on capital in a market which we believe will be under pressure for the next few years’.
Rok said property money would be redirected to acquisitive growth in the building and maintenance businesses ‘where there are numerous opportunities’.
In a trading update announced today Rok said figures for 2007 were expected to be in line with market expectations and ‘significantly ahead’ of 2006 profits.
‘This reflects continued progress in delivering our strategy and cash generation has been strong,’ it said.
Rok's aim is to become ‘The Nation's Local Builder’ by operating from a network of offices in major towns across the UK, using dedicated teams who live and work in their communities.