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Building services company Rok is to place itself in administration, it has been revealed today. It comes after the business revealed sizeable losses and shortcomings in its plumbing division.

The company, which styles itself as the "nation's local builder", reported half-year losses of £3.8m after accountant BDO uncovered failings in its plumbing, heating and electrical business.

In a statement to the London Stock Exchange this morning, Rok said: "The board of Rok plc 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."

Rok faces administration despite recently winning a contract with insurance giant Axa. It employs more than 2,000 tradespeople and has bases up and down the country.

The announcement comes ten weeks after another big Exeter firm - social housing firm Connaught - entered administration. The move has led to 1,400 redundancies.

In August, Rok reported half-year losses of £3.8m and suspended its finance director following the finding of "serious failings" in financial controls within the group's plumbing division. The revelations led to its share price dropping 50 per cent in one week.

However, in September the company landed a £40m deal to provide home insurance for a subsidiary of insurance giant Axa.