Aukett's merger talks with rival architect SMC called off

Aukett Fitzroy Robinson, having initially contacted rival architect group SMC to discuss a merger, has called a halt to the plan which would have made it the top 1 player in the UK.

Neither Aukett nor SMC would reveal the reason for the collapse in the talks.

Nicholas Thompson, chief operating officer at Auckett, said: “It’s a shame but I run a public company. It would have been quite a good business deal for the long-term.

“Geographically there is virtually no overlap in the UK and it would have given us a position in new market sectors.

“I’ve known SMC for a long time and have always had discussions with Stuart McColl [the group’s chief executive until recently]. They’d slipped back in the ratings so I approached them about a merger.”

SMC might be deep in financial turmoil, but Aukett is now flying thanks to the injection of new management when Fitzroy Robinson reversed into the publicly-quoted Aukett in 2004. Aukett has subsequently moved out of loss and into profit.

Brokers forecast turnover rising by £4m to £20m in the current year, with Aukett’s pre-tax profit rising threefold to £2.3m.

“The business is in good shape,” said Thompson. “The cash is positive and we have a strong orderbook. The emphasis has been on growth.

“We’re now back to our organic growth plan. I’ve got to look at more quality-based additions where the challenge is for the hearts and minds of the other set of people.”

In a statement on the Stock Exchange, SMC said: “Discussions are ongoing with a private equity-backed third party for a potential offer for the group.”

SMC plunged into loss in the first half of 2007, announcing that a turnover of £21m had left it in the red to the tune of £4.5m.