Rok boss Garvis Snook stunned the industry yesterday by putting the company into administration.

A stock exchange announcement said: “The board of Rok announces that it has resolved to put the Company into administration and to make an application to the Financial Services Authority to suspend the listing and trading of the Company’s Ordinary Shares on the Stock Exchange.”

“It is anticipated that the administration and suspension will become effective shortly.”

“Further announcements will be made in due course.”

This move follows weeks of rumours that the company was struggling in the maintenance sector which took a sever hit with the collapse of Connaught.

Rok was in the middle of talks with investors and banks about refinancing but said in September it was still confident of meeting market expectations for profits this year.

Shares in the company tumbled this summer when Snook revealed problems in the plumbing division which led to 80 job losses and the departure of Finance Director Ashley Martin.

The company was forced to make an apology to Martin who was absolved of blame for the plumbing problems.

Rivals began to smell blood due to the fact Rok was heading for trouble because of its structure of lots of regional offices as it traded as the “Nation’s Local Builder”.

Around £250m of the group’s £750m turnover is also in the social housing maintenance sector which is being rocked by reduced spending and has already claimed Connaught as a victim.

One rival said: “This has been coming for some time I’m afraid.

“The structure they have with lots of regional operations is a nightmare in a downturn because it just creates lots of fix costs at a time when revenue is falling.”

Latest results for Rok for the six months to August 31 show the firm made a £3m pre-tax profit on a turnover of £308m. Maintenance work accounted for £116m of turnover, social housing £84.5m and construction £116m.