Morgan Sindall expands in Scotland using Rok remains

Contractor Morgan Sindall is creating a £30m-turnover civils and building contractor from the remains of Rok subsidiary Tulloch.

Morgan Sindall set up the business, led by former Rok Scotland area leader Neil Duncan, after recruiting 10 executives from the collapsed firm.

Graham Shennan, Morgan Sindall’s managing director, said the new Inverness-based business had already won its first contract since the collapse of Rok.

Tulloch went out of business when Rok collapsed, with debts of just under £1m.

Shennan said: “We didn’t go through the administrator for this, we just spoke to the staff after the collapse.

While the contracts didn’t transfer, we’ve picked up our first bit of work and we think there’s a £20-30m business in this.”

The new business will bid for Tulloch’s former contracts when they are re-tendered, as well as general work. Its first contract is a £400,000 listed building conversion.

Inverness’ construction economy was hit severely by Rok’s collapse, as the contractor employed 324 staff in the Highlands town.

Contractor ISG has said it will open a new office in Glasgow, after having secured Rok’s largest single unfinished contract, the £86m Diageo bottling plant in Leven, Fife.

Rok collapsed owing £92.8m to suppliers and £6.2m in pay and benefits to staff.

Contractors Mansell, Mears and Primus have also benefited from taking on former parts of the Rok business, while the management of Rok’s Grimbsy subsidiary Topcon this week re-established the company independently.

Also this week, Knightstone, a housing association and former Rok customer, said it was launching a maintenance company staffed by former Rok employees to service 1,800 tenants.