97-year-old Liverpool insulated panel maker Hemsec, backed with £1m by city region Mayor Steve Rotheram’s Flexible Growth Fund, cuts annual losses amid a sluggish MMC market. Tony McDonough reports
Specialist Liverpool manufacturer Hemsec has narrowed its losses as it looks to benefit from a growing demand from the modern methods of construction market.
Hemsec, a family business that has been trading since 1928, operates two core product ranges across two manufacturing sites. It makes structural insulated panels (SIPs) at a Huyton factory and steel panels at its Rainhill site.
In its annual accounts for the 12 months to December 29, 2024, posted on Companies House, the business reported revenues of £12.5m. Its £137,900 pre-tax losses were much lower than the £534,803 reported for the previous year, which was an 18-month accounting period.
In late 2024 it was announced that Hemsec had secured agreement with the Liverpool City Region Combined Authority for a £1m loan from the Flexible Growth Fund. This is supporting the creation of 25 jobs and two apprenticeships.
It opened its 84,000 sq ft manufacturing facility at Huyton Business Park in August 2022 to add to its existing plant in Rainhill. This new factory was built to take advantage of anticipated growth in the modern methods of construction (MMC) market.
MMC mainly refers to the building of modular homes. These are houses constructed in factories and installed on-site. It is quicker than traditional construction and modular homes generally offer better levels of thermal efficiency.
However, the market hasn’t taken off as quickly as hoped with fluctuating demand from private housebuilders meaning there isn’t yet a steady pipeline. Affordable and social housing providers are starting to increase the demand for MMC homes.
Hemsec’s panels are a vital component of MMC homes but the so far sluggish growth in the sector is, in turn, tempering the firm’s own growth ambitions.
Writing in the annual report, co-managing director Frankie Cirafici said: “During the period, the SIPs market experienced a gradual increasing activity.
“However, continued delays in policy development relating to modern methods of construction have limited the pace of growth within this sector, presenting ongoing challenges in increasing capacity, utilisation and revenue.
“The company remains actively engaged in supporting the advancement of MMC and is well positioned to respond as the market develops.”
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In 1928 Cyril Hemmings set up the business to supply insulated cabinets for ice-cream makers. Today, it supplies its panels to multiple sectors. They are designed to keep cold air out or keep it in. Hemsec, which employs around 50 people, is still in the Hemmings family with William Hemmings now the sole owner.
Frankie insisted the company is well positioned for future growth, adding: “Production volumes and capacity utilisation improved modestly during the year, reflecting a gradual recovery in demand.”