Say's buy whilst cheap12 Aug 2010 17:04
Brokers appearing to be slightly more positive today;
Broker comment highlights;
Problem being confined to PHE only.
Net debt down to £32 million.
Divi may possibly be maintained.
Shares in Rok have recovered in early trading despite a 45 per cent fall yesterday following its profits warning and the suspension of finance director Ashley Martin, have recovered in early trading.
Rok shares are up 10 per cent today, following yesterday’s crash but the firm is still valued at just £32 million.
Investors reacted to the shock news that there had been “serious failings in financial controls” at the firm by offloading their shares.
Panmure Gordon analyst Andy Brown said: “A warning based on financial controls/accounting tends to hang over a share price for a while.
“The group reports H1 results on 17 August, so we should get more clarity on the current situation then. If the dividend can be held then there is big valuation upside but ahead of the results meeting we stay cautious.”
The problems have been confined to the plumbing, heating and electrical business, which was largely put together by alamgamating a number of smaller firms specifically to target this market.