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
| Nov 20, 2013
Safe Jobs Act would provide more protection for New York City construction workers
Legislation that would require safety training for construction workers on public projects in New York City has been introduced to the City Council.
| Nov 20, 2013
Boston officials grapple with impact of new FEMA flood maps
New federal maps for Boston significantly expand the number of homes and businesses in areas considered at high risk of flooding, a change that could force thousands of property owners to purchase expensive insurance and complicate redevelopment along the city’s waterfront.
| Nov 20, 2013
How LEED and Green Globes stack up
An analysis of the strengths and weaknesses of the Green Globes rating system and LEED standards puts LEED ahead, but doesn’t discount the merits of Green Globes.
| Nov 14, 2013
First LEED v4 certified project garnered by Beijing furniture showroom
Haworth’s showroom in Beijing’s Parkview Green building has been recognized as the world’s first certified LEED project under the USGBC’s new LEED version 4 beta program.
| Nov 14, 2013
OSHA proposes requirement for large firms to disclose workplace injuries
A proposal from the Occupational Safety and Health Administration would require companies with more than 250 employees to disclose workplace injury and illness reports online.
| Nov 14, 2013
GSA asks for input to help study energy-efficient technologies on its buildings
The General Services Administration has posted a request online, asking those in industry, academia and nonprofits for information on green building technologies.
| Nov 14, 2013
Document on gypsum boards sets stage for preparing Environmental Product Declaration
The Gypsum Association has completed the development of a product category rules (PCR) document for North American gypsum boards.
| Nov 14, 2013
ISO, FLASH team up to promote stronger building codes
ISO has joined the national nonprofit Federal Alliance for Safe Homes (FLASH) to encourage communities to build disaster-resistant buildings that can withstand hurricanes, tornadoes, earthquakes, and other catastrophic events.
| Nov 6, 2013
Cost to small businesses from silica rule is raised by progressive group
The silica-dust rule from the Occupational Safety and Health Administration could put small businesses at a disadvantage on the cost of complying with the mandate, according to the Center for Progressive Reform.
| Nov 6, 2013
Uneven snow load concern prompts structural study of Minnesota college auditorium roof
The roof of the Memorial Auditorium of Concordia College in Minnesota will undergo a complete structural analysis because it was built to 1946 codes and may not be able to accommodate uneven snow loads.