RMJM chairman takes over firm's debt
Accounts also reveal directors’ £478k pay packet
RMJM chairman Fraser Morrison has stepped in to take the group’s entire debt off its bank’s hands.
The news is disclosed in the latest report and accounts for the firm’s London business which have now been filed at Companies House.
The amount of debt now taken off Bank of Scotland is not revealed but the architect said the deal, which took place in March, “significantly strengthen[s] the financial position of the group”.
The report added: “This move is welcomed by the board as a further demonstration of the level of support provided to the group by Sir Fraser Morrison and close family members.”
According to the latest Sunday Times rich list, Fraser Morrison, along with his brother Gordon, is estimated to be worth £85 million after the pair sold the Morrison Construction business back in 2000.
The accounts also reveal that RMJM directors picked up £478,000 in the year to April 2011. It does not spell out which directors were the paid the amount but says they were paid by RMJM group for their work at group level and three other RMJM businesses – RMJM London, RMJM Scotland and RMJM Limited. Chief executive Peter Morrison and right-hand man, group commercial director, Declan Thompson are the only RMJM directors to sit on all four boards.
RMJM has been plagued by a series of cashflow problems which has seen staff go unpaid often for weeks at a time and in its London accounts, which were signed off by Thompson just over a week ago, the firm admitted “liquidity issues” meant there was “uncertainty around the timing of cash collections and recoveries on [a] certain [number] of the group’s projects”.
But it added: “Notwithstanding these liquidity challenges, the directors remain confident that these amounts will be fully recovered.”
And it said it was keeping an eye on the credit it was allowing existing clients but added that “further credit terms are granted only to customers who demonstrated appropriate payment history”.
The report praised staff “who have worked tirelessly to ensure that we emerge from the recession stronger and more efficient than ever”. It also lavished praise on its architects and said: “It is inspiring to work with them and we greatly appreciate their talent and creativity.”
The cost of closing its Cambridge office, which was part of the London arm, meant the London division racked up a £641,000 exceptional charge, including redundancy payments, in the period. Pre-tax losses at the business increased to £2.5 million from £1.7 million in 2010 on turnover up 12% to just over £8 million.
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Readers' comments (12)
I hope Peter is at least grounded for this and deputy Thompson made to stand in the corner! To the rest of the world - Who's your daddy?
Didn't a certain Craig Whyte take on Glasgow Rangers debt with Bank of Scotland last year? That didn't go too well.
Well Dad .... does this include paying all the staff? the staff pensions? and staff medical funds? consultants and sub-contractors fees? or are you just paying off the overdraft? As abc def said in a previous comment, pay up, right the wrongs and give up the practice to others who know what they're doing. It's just not their metier. It seems your family and their friends have milked the business, screwed a lot of good people, and trashed a respected practice. Let us hope you take the opportunity to make amends and quit with a little dignity
So the directors greatly appreciate their architects, but greatly appreciate their own 'compensation' an awful lot more.
If any of the directors are architects, I wonder what ARB thinks of this behaviour?
Interesting ..... I think I'm going get the old false teeth in, dress up in a sumo suit and go try tap Sir Fraser for pocket money.... might be the only way to get the cash they still owe me from January...
doob, might be worth sending a letter notifying the management of impending court action if you are not paid outstanding amounts owed within 14 days.
£641,000 to close the cambridge office.. the place is still sitting empty until the end of December 2013.
What you also have to remember, a good chunk of this money was for Alsops bar tab.
Charles,Doob - RMJM would rather you did go legal. that way they can pay your outstanding money the week before the court case.
How much did he buy the debt for? 20p in the£ I would guess, I would also guess that he was forced to buy the debt or face closure.
However, as long as Peter, Declan et al, get their £0.5m what does it matter!
Strengthen the companies finances? Of course it does, that is why New York is on strike, court cases around the globe are stacking up and the vultures are sniffing around clients and any remaining valuable staff.
Please move out of the business it is not for you, go and take up politics and leave the industry to people who know what they are doing.
£478k? For pathetic performance and unethical practices? That's theft. I could have ruined the firm for half that.