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RMJM in US$12m bail out

CEO talks of 'difficult two years' in the Middle East

RMJM masterminded the ADNEC's Capital Gate tower in Abu Dhabi. Photo: Getty.
RMJM masterminded the ADNEC's Capital Gate tower in Abu Dhabi. Photo: Getty.

Scotland-based architecture firm RMJM has been force to take aUS$12m bail out from its lead investor.

The BCC reported today that the Edinburgh-based firm – which has designed significant projects in the Middle East, including Abu Dhabi's Capital Gate – has received the capital injection from the Morrison family, which includes RMJM chief executive Peter Morrison and chairman Sir Fraser Morrison.

The extra funding for RMJM follows two years of severe trading problems, hit by the economic downturn and late payments by clients in the Middle East and Russia, with staff complaints and high level departures when pay was delayed.

The Morrison family will inject $8m in share capital and the remaining $4m as a loan, providing the agreement is supported by shareholders. A spokesman told the BBC that the money will not be used to pay of bank debt.

"After two very difficult years in the Middle East, the economy there is getting back on its feet and our US business is also starting to benefit from the recommencement of a number of projects which were put on hold during the height of the recession."

In a statement, Morrison said that difficult years in the Middle East had an effect on the company’s business.

"After two very difficult years in the Middle East, the economy there is getting back on its feet and our US business is also starting to benefit from the recommencement of a number of projects which were put on hold during the height of the recession,” he said.
 

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Construction Week - Issue 746
Jul 20, 2019