Lord Alan Sugar has sold his entire stake in engineering and technology recruitment agency which he has backed for more than four years.
Hernshead Group was set up by Tom Johnson in 2019 who shortly afterwards persuaded Lord Alan Sugar to invest despite him not going on hit BBC One show, The Apprentice.
Johnson has now taken full control of the Reading-base company and is planning to expand across Europe and North America.
Lord Alan Sugar had held 45 shares in the business while his long-time business associate Michael Ray held five. Johnson held 50 shares before the management buyout, according to a document filed with Companies House.
Lord Alan Sugar’s support has been ‘instrumental’
In a statement, Johnson said: “Today marks a huge milestone for Hernshead Group – I’ve officially completed a management buyout of fellow shareholder and director Lord Sugar to take full ownership of the company. 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 plenty more ambitious targets ahead.
“I’m looking forward to accelerating our growth over the next 5-10 years, continuing to expand into Europe and North America, and building on the strong team we’ve already built.”
According to its latest set of accounts, for the 12 months to 30 June, 2024, the firm’s turnover rose from £2m to £2.8m in the year while its pre-tax profit fell from £95,756 to £20,314.
‘The company will continue to thrive’
Lord Alan Sugar added: “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.”
The news comes after City AM reported in November 2024 that Lord Alan Sugar’s property empire returned to the black during its latest financial year after recovering from a huge loss.
Amshold, the company which Lord Sugar holds his property investments, achieved a pre-tax profit of £932,000 for the 12 months to 30 June, 2024.
The figure came after the firm fell to a pre-tax loss of £29.1m in its prior 12 months.
The return to profit came despite the group’s turnover falling from £11.4m to £8.7m in the year.
In June last year, Lord Sugar formally invested in the company run by the winner of the latest series of The Apprentice.
Rachel Woolford triumphed over pie company chief Phil Turner in the final of the hit BBC One show which was screened in April 2024.
Lord Sugar’s Amsvest Limited then took a stake of up to 50 per cent in Woolford’s R Nation.
According to the latest Sunday Times Rich List, Lord Sugar is worth an estimated £1.082bn.