Rok Plc Share Discussion Threads

[celeritas] 07/9/2010 23:57

Rivals circle as Connaught confirms administration
Tue 7th September | 21:54

Rival contractors are vying to take over Connaught jobs as the firm confirmed its fall into administration.

Councils and housing associations will mobilise plans to replace the ailing contractor as accountant KPMG steps in to run the company

Firms like Mears, Rok, Morgan Sindall and Willmott Dixon will be sounded out by housing bodies as the future of Connaught and its 10,000 workforce remains uncertain.

A Connaught Stock Exchange update said: "Following extensive discussions with the Group's secured lenders, it is now clear that sufficient support would not be extended to the Group as a whole to enable it to continue trading as a going concern.

"As a consequence, the Board is saddened to announce that it is in the process of appointing partners from KPMG as administrators of Connaught plc and its subsidiary, Connaught Partnerships Limited, which comprises its Social Housing Division."

The group's compliance and environmental divisions are not being placed into administration and will continue to trade normally.

Accountants at KPMG will now run Connaught while they seek to find a buyer for the business.

Contracts could be sold-off individually as rivals circle the remains of the firm.

John Morgan, chief executive of Morgan Sindall: "Clients have been approaching us over the last few weeks, but there has been a sharp increase in the number of approaches today."

Bob Holt, chairman of Mears Group, said: "We are watching the situation carefully and we are ready and willing to pick up work if it becomes available, we have been approached."

Another contractor told the Enquirer: "Now this has been confirmed it will be a case of talking with KPMG and seeing what contracts are up for grabs."

[celeritas] 07/9/2010 20:26

CNT news is sad for the 10,000 workers.
I'm sure a lot will be saved once companies like ROK and Mears have took over the majority. Councils will need a quick fix for maintenance cover so I expect new contracts in the coming days/weeks.

[quidzinn] 07/9/2010 16:31

6% of what ??? the spread today has negated any "rise".

There's no profit to be made at ROK.

Q

[quidzinn] 07/9/2010 16:21

Think you backed the wrong horse RobandKerry - MER up 14.5p (5.4%) today .....

Q

[daytraders] 07/9/2010 14:54

lol the press cant even get the ticker right, its MER not MERG.L

[daytraders] 07/9/2010 13:01

what caused ROK to drop 50% in august ?

[celeritas] 07/9/2010 12:18

Both firms will take work from cnt, Mears would never get the lot.
The £125m Norwich contract only agreed this year would be a good starter.


CNT's demise is not good for sdy.

[the heed] 07/9/2010 11:59

I thought ROK had said a week or so back that they were in talks with some of CNT customers.. Mears has released a RNS today thats all..

[celeritas] 07/9/2010 11:51

If and probably when cnt go councils will be looking for someone to take over maintenance contracts, this will be fairly quick with cover needed immediately once cnt have gone. ROK and Mears are the main two who will benefit from these contracts.

[quidzinn] 07/9/2010 11:51

Try reading the press gentlemen .... If anyone, Mears Group will take on some of the contracts held by Connaught.

One of the major causes of CNT's downfall was the deferment of several contracts - and that is not good news for any competitor...

Q

[robandkerry] 07/9/2010 11:47

Because CNT has not been officially would up, and ROK have not won any of their contracts.

ROK is not going to double in the next hour, but there is a lot more work up for grabs which has got to be good news for ROK.

[kibes] 07/9/2010 11:41

Well I'm interested in buying ROK but will wait a bit yet. If CNT going under is such good news why haven't ROK shares gone racing up already? Still a lot of uncertainty out there in my opinion.

[quidzinn] 07/9/2010 11:32

If anyone - Mears Group will take the juiciest parts of CNT's contracts.

Q

[robandkerry] 07/9/2010 11:27

Thanks for your contribution Q. :)

[quidzinn] 07/9/2010 11:21

Which smart money would that be ? - Yours ?

ROFLMAO

Q

[robandkerry] 07/9/2010 10:54

After todays suspension of CNT the smart money is going in here. With CNT going to the wall, ROK is perfectly placed to take full advantage of CNTs demise. I think ROK is a double money play min at these levels. Directors buying recently strengthens the cause.

Hop on board as these will be back to the £2.50 levels once we recover from the GFC.

[jeavom] 07/9/2010 10:51

CNT going was pretty much inevitable. I don't like well run companies failing. However, CNT is another story.

I agree this should give ROK's share price a gradual boost and could gain some momentum if they get a good number of contract wins.

I still think ROK is fairly cheap. My only concern is the management, who have acted like cowboys at times and could be adding more value. While they dealt with the recent problems promptly, they could have detected and sorted the problems sooner. For now I am holding and will wait and see what the next annual report has to say.

[celeritas] 07/9/2010 10:42

I don't like to see companies failing like cnt but it is very good news for ROK, these contracts will be renegotiated with companies like Rok and Mears winning the bulk. CNT are a big player in the UK market so I expect a lorry load of contracts up for grabs.

[jeavom] 07/9/2010 10:40

Who said CNT management wasn't dire? :-)

[4505] 07/9/2010 10:38

40p seems fair but 50p/60p would be better if they can announce some big gains from CNT

[philjeans] 07/9/2010 10:25

ROK's issues are already fully investigated and dealt with; they only affected one division anyway - rest of the business is booming!

A major competitor failing must be good news for this company.

A massive recovery due here; gone Long this am.

[ntbb] 07/9/2010 10:22

rok should be getting alot of contract from cnt