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
| Jul 12, 2012
Federal budget chief to explain impact of pending defense cuts before Congress
Office of Management and Budget Director Jeffrey Zients is scheduled to testify before the House Armed Services Committee Aug. 1 to explain the possible effects of $500 billion in defense cuts on U.S. companies, including those in the design and construction industry.
| Jul 12, 2012
Pennsylvania legislature moves to prevent undocumented workers on public construction projects
Legislation to prevent undocumented workers from being hired by construction companies working on state-funded projects passed the Pennsylvania Legislature.
| Jul 12, 2012
New York’s One Bryant Park Bank of America tower is first new high-rise to achieve LEED Platinum
The new One Bryant Park Bank of America tower in midtown Manhattan is the first new commercial high-rise to achieve LEED Platinum certification.
| Jul 12, 2012
OSHA launches campaign to prevent heat illness
The Occupational Safety and Health Administration has launched its 2012 Heat Illness Prevention Campaign to educate employees and their employers about the hazards of working outdoors in heat, and how to prevent heat-related illnesses.
| Jul 12, 2012
Contractors have increasing concerns over new federal hiring quotas
A proposed rule by the U.S. Department of Labor's Office of Federal Contract Compliance Programs to increase disabled- and veteran-worker hiring quotas for federal contractors continues to raise deep concerns among contractors.
| Jul 5, 2012
Veterans Administration threatens to pull contract on new Orlando medical center
The Veterans Administration asked contractor Brasfield & Gorrie to get more workers on the job and figure out a way to get the job done faster, or the VA would pull the contract on the much-delayed Orlando VA Medical Center.
| Jul 5, 2012
Cost to contractors for new federal hiring quotas much higher than estimated, AGC says
Administration officials significantly underestimated the cost to construction employers of proposed new hiring quotas for federal contractors, according to analysis by the Associated General Contractors of America.
| Jul 5, 2012
Roof membrane could have prevented roof parking deck collapse, specialist says
The collapse of a section of a roof parking deck at the Algo Centre Mall in Elliot Lake in Ontario, Canada could have been prevented if the structure had a membrane, according to a concrete expert and specialist in structure analysis at McMaster University.
| Jul 5, 2012
New Joplin, Mo. hospital being built to withstand tornado that destroyed predecessor
After the May 22, 2011, EF-5 tornado destroyed St. John’s Regional Medical Center in Joplin, Mo., architects and engineers analyzed how the nine-story structure reacted to the storm.