Thursday, July 9, 2020

Almost 200 Jobs at risk as one of Lincolns biggest construction firms files for administration

Almost 200 Jobs are at risk as one of Lincoln’s biggest names, the Simons Group, files for administration.

Around 190 job losses are expected, with some staff retained to help with the wind-down of the business and attempts to transfer existing contracts to alternative contractors, administrators according to FRP Advisory.

The family-owned company had a £100 million turnover but is was also carrying a significant pension deficit — £11.3 million at its last filing in March 2018.

Simons was established in 1944. It was was led by chief executive Tom Robinson who was appointed to the post five years ago from now-collapsed Carillion, where he spent 21 years.

The company had already undertaken a restructuring programme in its 2018 financial year at which time staffing was cut from 215 to 182.

FRP Advisory is handling the administration and will endeavour to find a buyer for the firm, which also includes the construction, development and design arms.

Joint administrator Nathan Jones said: “After a period of challenging trading and contract delays resulted in unsustainable cashflow difficulties, the directors of Simons Group were left with no choice but to enter the business into administration.”

Simons Group made a £704,000 pre-tax profit on turnover of £104.4 million in its last financial year, but made a £3.9 million pre-tax loss the previous year.

The company was building mainly for the retail and commercial sector and said the market was facing a “challenging time,” which it expected to continue.

 

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