Sir Fraser Morrison, the owner and chairman of architect RMJM, is the backer behind the investment firm that bought RMJM for £11m in late March.
Declan Thompson, RMJM’s group commercial director, said the deal, which involved Duthus Investments buying RMJM Architecture Limited for £11m, would wipe £12m of debt off the RMJM books and allow the firm to reinvest.
According to Companies House, Duthus Investments was incorporated on the 5 March.
Sir Fraser Morrison is a construction tycoon and one of Scotland’s wealthiest individuals and Thompson said the investment firm was part of his “family of investment companies”.
Morrison bought a 56% share in RMJM in 2002 and installed his son Peter Morrison as chief executive in 2006. At the time of the sale to Duthus Investments earlier this week Morrison owned 75% of the voting rights.
Thompson said the sale was a “simple thing to allow Sir Fraser Morrison to write off £12m” and was part of the board’s “strategy to get rid of debt off the books”.
He added that the deal left the firm with debts totalling around £11m and that the firm was “quite optimistic” about the future.
Thompson said the firm’s cash flow problems, which have seen staff receive salaries late and pension payments delayed, were now behind it following the sale.
“RMJM has spent much of 2011-12 doing difficult things and making difficult choices to get the business stable,” he said.
He said the loss of a number of senior staff over the last year had been wrongly reported by the media. “In quite a lot of instances those people have been asked to leave the business because they weren’t performing,” he said.
He added there were no more plans for further cuts to staff numbers and the firm would be hiring new staff where necessary. “We have got to the point where we have enough, or just enough, very busy architects,” he said.
Thompson said he had no plans to add to the senior team, which includes recently-appointed principal Jonathan French, who joined from David Chipperfield Architects earlier this year.
Thompson said he expected to see recovery in the Chinese and Middle East markets to return some growth to the firm. “The UK market is going to stay quite difficult,” he added.
http://www.building.co.uk/buildings/architecture/morrison-emerges-as-backer-behind-rmjm-buyer/5052760.article
Related Stories
| Jan 8, 2015
Gundersen Health System says it is nation’s first net-zero healthcare network
Gundersen Health System, a network of hospitals, medical clinics, and nursing homes in Wisconsin, announced that it is producing more energy than it consumes, making it the first net-zero energy health system in the U.S.
| Jan 8, 2015
Construction industry could be hurt by non-renewal of terrorism insurance bill
Insurance industry experts say without federal terrorism reinsurance in place for 2015, resulting canceled property/casualty insurance coverage and market chaos could be disruptive to the economy.
| Jan 2, 2015
Ohio’s Licking County to hire construction stormwater runoff specialist
Formed to focus on agriculture, the Licking County (Ohio) Water and Soil Conservation District has branched out to oversee construction sites.
| Jan 2, 2015
Standards groups join forces to spur more sustainable parking facility design
The International Parking Institute, Green Parking Council, and Green Building Certification Institute have joined forces to promote the design of more sustainable parking facilities.
| Dec 23, 2014
EPA okays coal ash recycling in construction materials
The Environmental Protection Agency ruled that the use of coal ash produced in power plants can continue to be incorporated into construction materials.
| Dec 23, 2014
Dunkin’ Donuts launches green building certification for its restaurants
Dunkin Donuts has launched a green building certification program to help franchisees build sustainable, energy-efficient restaurants.
| Dec 23, 2014
EPA releases WaterSense draft specification for flushometer-valve toilets
The U.S. Environmental Protection Agency's WaterSense program has released a draft specification for water-efficient flushometer-valve toilets.
| Dec 23, 2014
American Iron and Steel Institute publishes design guide for new profiled steel diaphragm panels standard
The American Iron and Steel Institute (AISI) published AISI D310-14, “Design Examples for the Design of Profiled Steel Diaphragm Panels Based on AISI S310-13.”
| Dec 18, 2014
New federal regulations impact construction firms doing business with Uncle Sam
Federal contractors may be subject to several new rules in 2015 that impact how they are selected for contracts and how they do business with the federal government.
| Dec 18, 2014
ASHRAE/IES energy standard could become more applicable for global use
A proposed addendum to ANSI/ASHRAE/IES Standard 90.1-2013, Energy Standard for Buildings Except Low-Rise Residential Buildings would make the standard more applicable for use around the world.
