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Boardroom shake-up halts SMC expansion

The SMC Group has put its massive expansionist plans on hold following a surprise boardroom reshuffle.

Founding chief executive Stewart McColl (pictured) has been moved into the deputy chairman role while former non-executive chairman Rodney Walker has taken over the day-to-day running of the company.

The group has gone through a period of massive growth over the past year, coming from nowhere to a position where they would be expected to top the next AJ100.

The restructuring follows a recent profit warning, which saw predicted profit for the past financial year downgraded from £7 million to £5 million.

McColl told the AJ that there would now be a postponement of potential takeovers.

It had long been trailed that there the company had two takeovers in the pipeline for early in 2007.

It was also understood that the listed firm was in talks to take over S&P Architects.

'There has to be a period of consolidation and a review of everything before we move forward,' McColl said.

And this message was backed up by Walker, who, in a statement to the city, said: 'As part of my new executive role I will be reviewing all operational and managerial aspects of the SMC business.

'In the short term we will be focusing on realising operating efficiencies and organic growth.

'Following the changes that I anticipate implementing, I believe that the group will be well placed to maintain its position as a leading business in the fields of architecture and design.'

by Ed Dorrell

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