Ukraine conflict among factors to blame for HE Simm’s £18m debt pile 

The 77-year-old Liverpool-based M&E engineering firm was sunk by loss-making jobs in the capital following the outbreak of the war in Eastern Europe.

A report published on Companies House by administrator Forvis Mazars sets out HE Simm’s debt position at the time of its collapse in September.

Despite generating £110m in revenue for the year to 31 December 2024 – down slightly on the previous year – HE Simm was forced to close its offices in Liverpool, Manchester, and London after failing to weather a perfect storm of headwinds.

At the time of its collapse, the firm owed £18m to creditors, according to the report.

Having returned to growth after the covid pandemic slashed its earnings and profit, HE Simm was impacted by the rising costs and supply chain disruption caused by the Ukraine war, creating “one of the most challenging trading environments in the company’s history”, the report said.

Around that time, six projects in London lost a combined £20m, prompting a £17m cash injection from directors earlier this year and a strategic decision to withdraw from London.

In June, things got worse, “the administration of a key client, increased creditor pressure, the loss of a number of projects, delays to major schemes, challenging practices from main contractors, and further losses on London projects” ultimately proved too much and Forvis Mazars was appointed.