Liverpool-based HE Simm & Son Ltd posted a pre-tax loss of £10.3m for the 17 months to 31st December 2023 on turnover of £118m.
However, with a subsequent £1.4m cash injection – and with a further £2.6m planned before the end of December – the current financial year is looking much healthier, the company says
The 2023 results were dogged by inflationary pressures on fixed price contracts and several legacy projects in London, which accounted for the majority of the loss. A strategic restructuring of the business has since led to a streamlining of management structures and reporting processes together with a more selective approach to tendering.
The order book stands at £150m with opportunities in the pipeline and several major projects due to be completed this year. And the business remains free of bank debt.
Chief executive Gareth Simm, whose grandfather founded the business, said: “This has undoubtedly been one of the most difficult trading periods in our history.
“Rigorous management reviews have been undertaken to ensure any operational performance issues have been recognised. Our review has reaffirmed that our focus needs to be on key – trusted – client and supply chain relationships, risk management and profitability in sectors where we have a competitive advantage and a proven track-record.
“We have implemented a newly focused corporate strategy to ensure a strong foundation is in place that is aligned to a return to profitability and excellence in project delivery.
“The actions we have taken during the reporting period, which was extended to 17 months to accommodate the strategic restructuring, mean that we are already forecasting a return to profitability for the current financial year with operating margins that have recovered to an acceptable level.”
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