Building firm Rok has announced there have been "serious failings in the financial control of the Plumbing, Heating and Electrical (PHE) business" following an independent review.

The firm has also suspended Chief Financial Officer (CFO) Ashley Martin with immediate effect and his duties will be passed on to David Millar who was previously CFO between 1998 and 2002.

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Rok anticipates this will have an adverse affect on the overall Group profits for this year.

However, the Group said trading within the Construction and Social Housing businesses is strong and are believed to perform well during the rest of the year.

In a statement Rok said: "The Board believes that it has taken appropriate action in the best interests of shareholders and the future profitability of the Group. Rok's fundamentals are strong - a solid order book, good momentum in the Social Housing and Construction divisions and very good cash generation leading to materially lower debt. With a significantly lower fixed cost base and having addressed the underperforming operations, the Board is looking ahead with confidence."

(CD/BMcC)