Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Simons Group remains in the red with pre-tax loss

Simons Group has reported a pre-tax loss of £1.4m in the year to 31 March 2013 – flat with its losses in 2011/12.

Turnover was down slightly in the period to £98.3m, from £101.6m in the year to 31 March 2012.

The construction, maintenance and fit-out firm reported a gross profit of £6.4m in 2012/13 but its operating costs were higher at £7.5m, resulting in the overall loss.

In the period, Simons spent £0.4m on restructuring costs which it said had reduced its fixed cost base by £1m.

Simons Group chairman Paul Hodgkinson said: “While these results are still disappointing, they compare favourably to many of our peers, having seen many construction and property development competitors cease trading in recent years.”

He added that the group had maintained its credit rating of 3A1 with rating agency Dun and Bradstreet and preserved positive cash balances.

Simons said its construction business returned to “modest profitability” by improving competitiveness through its supply chain and managing risk, but its development business made losses due to a slowdown in retail schemes coming to market.

It claimed retail property investors were becoming more adverse to risk and there had been an increase in legal challenges to planning decisions, which had delayed some of its schemes into the next financial year.

In 2011/12 Simons was awarded the contract by Gazeley to build a manufacturing facility for AG Barr at the developer’s Magna Park site in Milton Keynes. It has since also won a £20m John Lewis distribution centre for Gazeley (pictured).

The contractor said contract awards from M&S, Morrisons, Sainsbury’s and Boots “creates a solid order book and provides optimism for a solid year ahead”.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.