Property services group Rok, which has reported record results, is planning to increase its stake in the Midlands following its successful acquisition of Birmingham-based builders Kingfisher.
The group, which has recorded a 33 per cent rise in full-year pretax profits to #22.4 million, said the addition of Kingfisher had been key to its success.
Finance director Ashley Martin said: "There is no doubt that the company is under represented in the Midlands and we want to strengthen our stake in the region.
"With the acquisition of Kingfisher we were able to significantly increase our presence in the West Midlands and now we want to increase it further. We are looking at continued acquisitions in the area and in other parts of the country where we do not have much of a presence at the moment such as South Wales and East Anglia."
The company, which provides building maintenance services, said revenue rose 24 per cent last year to #689.3 million, in turn lifting its total dividend 17 per cent to 14 pence. With no downturn in sight for the construction industry, the group said it was confident of sustained success for the remainder of the current year.
"In the Midlands we have done work for housing associations in Birmingham and Bromsgrove, as well as for the Bromford Housing Association and we expect this to continue," said Mr Martin.
"We have also been active in the maintenance sector, especially with work as part of the Government's Decent Homes programme, we we also expect to see continue."
The group, which brands itself as "Britain's Local Builder", said that it expected 2007 to be another bumper year as orders were already 58 per cent up on last year.
The #522 million order book and its #1.5 billion of framework agreements mean the company has already secured between 65 and 70 per cent of this year's expected turnover.
Chief executive Garvis Snook said: "What's really coming through is that every part of the business is performing well. The key driver for margins is coming from two areas: response maintenance, whose margin came through strongly in the second half, and the sheer amount of planned maintenance we do, particularly in the social housing sector."
Rok shuns big schemes in favour of small building work and has devised the "Local Builder" strategy with a network of 50 UK stores and its own tradesmen looking after each area.
The strong year created operating cashflow of #33.8 million, against #5.5 million last year. This is expected to bolster Rok in its plan to acquire small players similar to the Scottish builder Tulloch, which it bought for #31 million last year.
The Kingfisher company was acquired last July in a cash and shares deal worth #4.5 million.
Kingfisher, which was founded in 1994, provided planned maintenance services to local authorities and housing associations in the region.
The company said its staffing levels were good but if it was to meet the requirements of its order book then more may have to be recruited.
"We are looking to strengthen our direct labour force and reduce our reliance on sub-contractors," said Mr Martin.
"Our pay and staff retention rates are among the best in the construction industry so we would be hopeful of attracting the staff we need."
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