Liverpool family-owned M&E engineering firm HE Simm collapses after 77 years with all 128 employees made redundant with immediate effect as CEO says directors ‘fought very hard’ to save the business. Tony McDonough reports

M&E engineering firm HE Simm has confirmed administrators have been appointed to the 77-year-old business with all 128 employees made redundant with immediate effect.

LBN reported on Monday that the Liverpool firm, headquartered in Spinnaker House in Liverpool with offices in London and Manchester, had filed a notice in court of its intention to appoint administrators.

On Tuesday it was confirmed that Patrick Lannagan, Adam Harris and Richard Hough of Forvis Mazars had been appointed joint administrators of HE Simm & Son. They are seeking potential buyers of the assets, including existing customer contracts.

Founded in 1948, HE Simm provides engineering services to the construction industry. One of its more recent high profile projects has been for developer X1 at Manchester Waters.

In its most recent annual accounts for the 17 months to December 31, 2023, posted on Companies House, HE Simm revealed pre-tax losses of more than £10m and revenues of more than £118m.

In the previous year it had reported a pre-tax profit of almost £900,000. In the report it said: “The company was significantly impacted by high inflation pressures on fixed price contracts while also experiencing performance issues on a number of legacy projects located in London.”

HE Simm was founded in 1948 by Ernie Simm after he acquired George Hockenhall Plumbing in Liverpool with a loan of £200. He renamed the business in honour of his father Harold Edgar.

Chief executive Gareth Simm, grandson of the founder, spoke about how he and his fellow directors and family members had battled to save the business. In the last accounts they pledged to inject a further £4m into the firm.

“Since the company was founded in 1948, HE Simm has been built on the talent, hard work and loyalty of its people,” said Gareth.

“Over the decades we have delivered countless landmark projects together not only in the North West but all over the UK, including London. We are very proud of our reputation for excellence and quality and for always ensuring that our culture and values were at the heart of everything we did.

“Sadly, recent circumstances have placed enormous pressure on the business that we have been unable to withstand.

“These have included a combination of factors – failure of a key client, the loss of a number of projects, delays to major schemes, increasingly commercially challenging client behaviours and losses on London projects.

“Some of these challenges have been ongoing for a number of years. As shareholders, and a family, we have fought very hard, and invested heavily over the last two years in an attempt to avoid today’s outcome.

“But in the end the harsh reality of the construction industry, the tight margins we operate at and the pressures as described, left us with no choice but to appoint administrators.”

Gareth explained the administrators will now take full control of the business to ensure “the best possible outcome” for HE Simm’s creditors.

He added: “We would like to take this opportunity to heartfeltly thank our dedicated colleagues for their unwavering commitment to HE Simm over the years.

“It might sound cliche but genuinely, our family was bigger than the Simm family. To say that it will be missed is an understatement.

“We would also like to thank our valued customers and suppliers for their ongoing patience and support, many of whom did everything they could to help us avoid the position we now find ourselves in, for which we will always be eternally grateful.”

Richard Hough, joint administrator and director – corporate restructuring at Forvis Mazars, also said: “The company has encountered cash flow challenges, resulting predominantly from challenging market conditions.

“After careful consideration of the financial position, the directors of the company reached the difficult decision to place the company into administration.

“Regrettably, following a review of the financial circumstances of the company the administrators have made the difficult decision to make all employees of the company redundant with immediate effect.”