RMJM's profits tumble by nearly three quarters
Accounts lodged with Companies House last week show that RMJM’s turnover fell by a third and its pre-tax profits by nearly three quarters in 2009-2010
The financial report, which only covers the 12 months up to 30 April 2010, reveals that the RMJM Group made a profit of just £1.64 million before taxation compared with £5.7 million in 2009 - a drop of 71 per cent . The business’ turnover had also plummeted from £121.8 million in 2009 to £81.2 million in the following year.
According to the document the ‘seismic challenges facing the architectural sector worldwide in the past two and a half years’ had posed a major challenge…to maintaining a position of profitability [for virtually every firm]’.
The Group admitted having debt issues - branded ‘a lack of liquidity across its client base’ - in particular in the Middle East where it was carrying out ‘commercial negotiations in relation to the recovery of certain balances’.
In April RMJM’s controlling dynasty, the Morrison family, orchestrated an £8 million refinancing deal in an attempt to turn the company’s financial position around.
The move, it is claimed in the directors’ report, ‘significantly strengthened the balance sheet’ and ‘maintained a strong and highly valued relationship with the Bank of Scotland’.
Meanwhile John McAslan and Partners has revealed a 36 percent increase in turnover from £7.5 million in 2009 to £10.2 million for the year ending 31 October 2010.
Of that, £2.5 million worth of fees was made outside of the UK. Total staff numbers rose from 84 in 2009 to 87 in 2010.