In its latest trading statement Rok said its principal building and maintenance operations, which represent the bulk of the group's turnover and profits, continue to perform well.

Rok Development, however, appears to be suffering from poor market conditions.

The group says: "Current issues affecting the credit markets have impacted institutional investors' confidence in the property investment sector resulting in a fall off in demand as those buyers have been unwilling to commit in the current climate."

The board expects this will result in operating profits from Rok Development being some £2m below market expectations for the year ending 31 December 2007 and that development profitability will continue to be under pressure into 2008.

The anticipated shortfall for Rok Development is expected to be recovered by the performance from Rok's building and maintenance activities which is trading ahead of expectations.

Overall, the board says it remains confident of meeting market expectations for the year ending 31 December 2007 and 2008.