Scotland’s largest architecture firm, RMJM Group, has placed three of its UK subsidiaries into receivership. Insolvency professionals were appointed to RMJM Limited, RMJM Scotland and RMJM London after directors concluded the businesses could no longer continue to trade.
Following their appointment, receivers from accountancy firm KPMG immediately completed a sale of the business and assets of each company to the newly formed RMJM Architecture. Under the terms of the transaction, all 120 employees of the companies transferred to the purchaser.
Commenting on the sales, Blair Nimmo, head of KPMG Restructuring in Scotland said: ?The companies?? businesses have been very severely impacted by the slowdown in the construction industry as a result of the worldwide recession. The sale of the businesses to RMJM Architecture will help facilitate continuation of the companies?? current contracts, preserve the employment of some 120 people and achieve the maximum return for the companies?? creditors??.
RMJM Group said its subsidiaries in the Middle East, United States and Asia were unaffected by the restructuring.
The most recent accounts for RMJM Limited cover the 12 months to April 30, 2011 and show a pre-tax profit of £679,000, down from £1.9 million the previous year, with turnover increasing from £5.4million to £8.6million. RMJM London accounts for the same period show a £2.5million pre-tax loss, against a £1.7million loss the previous year in spite of turnover rising from £7.2million to £8.1million. At RMJM Scotland, losses widened from £2million to £2.4million as turnover dipped from £17.2million to £9.6million. The overall RMJM Group accounts report a near £11million loss with turnover down from £81.2million to £71.6million.
The accounts also stated RMJM returned to operating profit in the year ended April 30, 2012, and the most recent financial year had started well.
RMJM was founded in Edinburgh in 1956 by architects Robert Matthew Stirrat Johnson-Marshall. Its work in Scotland includes the Royal Commonwealth Pool in Edinburgh, the Tron Theatre in Glasgow and the Falkirk Wheel. In recent years it has worked on high-profile international projects including the China National Convention Centre in Beijing, the Gazprom Tower in St Petersburg, Russia, and the Princeton Hospital in New Jersey.