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
| Mar 5, 2014
Quebec's building code doesn't meet needs of its aging population
The issue was raised in the wake of a tragic fire at a seniors' residence in L'Isle-Verte.
| Mar 4, 2014
Massachusetts Congressional delegation asks FEMA to slow flood zone map requirements
After a recent successful challenge of the scientific methodology used to redraw the coastal high-hazard zones, the Massachusetts congressional delegation is asking federal officials to put the brakes on new flood zone maps for the Bay State.
| Mar 3, 2014
Injury-liability law responsible for higher construction insurance cost in New York
Construction contractors and developers in New York state face $3 billion more in costs and 667 more accidents per year because of a state law that holds builders solely liable for such accidents, according to a study commissioned by the New York Civil Justice Institute.
| Feb 28, 2014
GBI issues guide to help federal agencies meet sustainability mandates
The Green Building Initiative has released “The Guiding Principles Compliance for New Construction,” for federal buildings to help federal agencies meet sustainability mandates in the construction of new buildings.
| Feb 28, 2014
Steel Joist Institute standards open for review
The 2015 draft of the Steel Joist Institute’s “Single Joist Standard Specification for K-, LH-, and DLH-Series and Joist Girders” will be available for public review until May 31, 2014.
| Feb 28, 2014
Metcalf Construction wins key reversal from federal appeals court in Hawaii on military contract
Metcalf spent more than $76 million on a military construction project and sued to recoup costs.
| Feb 19, 2014
Obama Administration moves to boost fuel efficiency standards on heavy-duty vehicles
The Obama Administration wants to boost fuel efficiency of medium- and heavy-duty trucks for models made in 2019 and later.
| Feb 19, 2014
Net Positive Energy + Water is latest green certification standard
The advancement of sustainable construction has reached a new milestone with the development of Net Positive Energy+Water, a new green building certification standard that aims to improve net zero approaches to energy and water conservation.
| Feb 19, 2014
Obama’s climate resilience panel says PVs, cool roofs should be part of solution
Among the suggestions were rooftop solar energy systems and cool roofs, which could be encouraged by policies from local governments.
| Feb 19, 2014
OSHA proposes three-year postponement of crane operator certification requirement
OSHA’s proposal to postpone the compliance date for crane operator certification by three years was made official on Feb. 7 when it was published in the Federal Register.
