A family-owned engineering services specialist, which has worked on prominent development projects across the country, has forecast a further drop in revenue for its current financial year. However, the business added that its balance sheet “remains strong”.
HE Simm & Son is headquartered in Liverpool and also has offices in Warrington, London and Crawley.
Founded in 1948 it employs more than 1,000 people and continues to be owned by the Simm family.
The revenue forecast for its current financial year has been revealed in newly filed accounts for the 12 months to 31 July 2020.
The documents, submitted to Companies House, show the firm’s revenue dropped from £99.7m to £62.3m during the period while its pre-tax profits went from £2.6m to £723,209.
A statement signed off by the board said: “In a year of challenging trading conditions as a result of the outbreak of Covid-19 and market uncertainty, HE Simm delivered a positive set of financial results.
“A reduction in revenue was inevitable with the temporary closure of construction sites from March, subsequent working restrictions and customer hesitancy to invest and spend in such unpredictable times.
“However, thanks to financial prudence HE Simm’s balance sheet remains strong.
“The company has now completed a comprehensive review of resources and its business organisation to secure its position moving forward.”
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The statement added: “Moving forward, we are conscious of the ned to continue to respond to the current crisis and prepare for challenging times in the year ahead.
“In particular, we need to ensure that our size aligns to our pipeline while enabling us to continue delivering exceptional project quality and being ready for a market upturn in 2022.
“Alongside reductions in operating costs, we will seek growth in areas such as offsite manufacturing and the new services enabled by the recent formation of the HE Simm Group as a result of our merger with HESIS and Aspen Thorn.
“This will include increasing our market share in London and other selected regions, developing our work winning function and expanding our revenue streams across targeted market sectors.”
In recent years the group has worked on projects such as River Street Tower, Manchester, The Arora Tower, Ballroom and Intercontinental Hotel @ The O2, London, and X1 Media City – towers one and two.