For Subscribers

Get the complete article now!

TWST: In order to start up the interview, would you give a brief overview of Rok property solutions (London: ROK.L)?

Mr. Snook: Rok property solutions originally started life in 1939 when three building companies in Exeter joined to do work for the Ministry of Defense, calling themselves Exeter Building Company (EBC). Post-war it grew rapidly to become the leading South West regional builder and developer, joining the Unlisted Securities Market (USM) in 1981 and moving to a full market listing in 1988. The Company then suffered during the recession of the early 1990s and, lacking a clear strategy, did not recover along with the general UK economy. I joined in the Summer of 2000 as Chief Executive and carried out a major review of the business, which lead to a restructuring and loss of 93 jobs, setting in place a strategy of property solutions at the core of which is a drive to understand our clients’ businesses/organizations, what they are trying to achieve and what their dreams are before then looking at how we can use our skills in property development, construction and property maintenance to accelerate them towards their goals. In this way we aim to add value to our clients’ businesses and share in the value that is created. In contrast, much of the UK construction industry sells its services on the basis of lowest possible cost.

TWST: What is the current state of your industry and what is its growth potential?

Mr. Snook: It’s actually good at the moment, the only cloud on the horizon being the commercial market in London, where the battering of the finance industry over the last 12 months is leading to an over-supply. Out in the regions, whilst the private sector market has slowed since 11 September 2001, UK Government spending in areas of health, education and housing has increased significantly, more than compensating for any shortfall. The forecast growth rate for our industry in 2003 is, I believe, circa 3% rising to 3.5% in 2004. In all our businesses, order books are stronger than they have ever been, and are continuing to grow. Putting this in context, total construction related sales in the UK are approximately GBP 55 billion per annum and our brokers are indicating that our sales will be circa GBP 340 million in 2003. Therefore, we are taking a relatively small market share and there are significant opportunities for us to grow and develop.

TWST: Long term, five years down the road, where do you see your Company?

Mr. Snook: Five years down the road we will be delivering, via the three Rok stars, a property solutions strategy throughout the UK. It will be a truly national business so our sales will be approaching the billion pounds per annum mark and we will be pushing our net returns beyond where they are currently. By then, as well, I would have expected this to have developed the strategy further and we could well be seeing the emergence of a fourth Rok star.