RMJM chairman Sir Fraser Morrison takes on firm’s £20m debt

RMJM Group chairman Sir Fraser Morrison has stepped in to take the architectural practice’s debt of more than £20 million off its bank’s hands.

The disclosure was made in annual accounts newly filed at Companies House, but which cover the year to 30 April 2011.

They show that the Edinburgh-based firm, which has been plagued by problems paying its staff on time, made a pre-tax loss of just under £11m during the period, compared with a profit of £1.6m a year earlier.

It described 2010-11 as “an extremely difficult” time for the sector. Turnover fell to £71.6m from £81.2m.

At the operating level, RMJM racked up losses before exceptional items of £3.1m, down from an operating profit of £2.2m in the previous 12 months.

Writing in his chairman’s statement, Morrison said the business had seen a “healthy” return to operating profitability in the year to 30 April 2012. The accounts also note the £8m injection of equity and debt pumped into the firm last year and which had been previously announced.

Morrison wrote: “The above has supported our confidence in the business and allowed me to take a fundamentally important step to further strengthen the business through my family’s acquisition of the group’s entire bank debt obligations of over £20m from Bank of Scotland in April 2012.”

The accounts also show that the firm’s global headcount fell by almost 100 during the period under review to 840. The highest-paid director received £346,000, down from £456,000.

The chairman added: “Looking forward to the rest of 2012 and onwards to 2013, RMJM is uniquely placed to support our clients globally.”

According to the Sunday Times rich list, Morrison, along with his brother Gordon, is estimated to be worth some £85m.