Lord Alan Sugar has sold his entire stake in Hernshead Group, an engineering and technology recruitment agency, marking the end of his four-year involvement with the company.
The firm, established in 2019 by Tom Johnson, secured investment from Lord Sugar shortly after its launch, despite Johnson not participating in the BBC reality show The Apprentice.
With this sale, Johnson has now assumed full ownership of the Reading-based business and plans to expand into Europe and North America.
Management Buyout & Future Growth
Before the buyout, Lord Sugar owned 45 shares, with his long-time business associate Michael Ray holding five. Johnson previously held 50 shares, as per documents filed with Companies House.
In a statement, Johnson described the buyout as a significant milestone, expressing gratitude for Lord Sugar’s guidance:
“This is an incredibly exciting time for me and the team. A huge thank you to Lord Sugar for his invaluable guidance over the years—his support has been instrumental in getting us to where we are today.
“Since our founding in 2019, we’ve grown rapidly, being recognised as one of the UK’s fastest-growing companies, and we have ambitious targets ahead. I’m looking forward to accelerating our growth over the next 5-10 years, continuing our expansion into Europe and North America.”
Financial Performance & Expansion Plans
According to its latest financial results for the year ending 30 June 2024, Hernshead Group reported:
- A turnover increase from £2 million to £2.8 million
- A decline in pre-tax profit from £95,756 to £20,314
Despite the profit decline, Johnson remains focused on expanding the company’s presence internationally.
Lord Sugar’s Statement & Other Business Ventures
Lord Sugar praised Johnson and his team for their efforts in building the company’s strong reputation within the recruitment sector:
“It has been a pleasure to be part of Hernshead Group’s journey from its launch. Tom and the team have done a tremendous job in driving the business forward.
“They have created an exceptional reputation in the recruitment industry, and I am confident that under Tom’s leadership, the company will continue to thrive. I wish Hernshead Group and the entire team continued success as they move into their next phase of growth.”
This sale follows recent reports of Lord Sugar’s property empire returning to profitability. His company, Amshold, recorded a pre-tax profit of £932,000 for the year ending June 2024, after a previous £29.1 million loss.
Additionally, in June 2024, Lord Sugar invested in R Nation, a business founded by The Apprentice winner Rachel Woolford. His company, Amsvest Limited, took a stake of up to 50% in the business.
According to the latest Sunday Times Rich List, Lord Sugar’s net worth is estimated at £1.082 billion.
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