Administration · 29 October 2019

Simons Construction

Main contractor · Lincoln · East Midlands · Part of Simons

What happened

SIMONS CONSTRUCTION LIMITED (company number 00961095), incorporated in 1969, entered administration on 29 October 2019. Its status at Companies House is now: liquidation.

Why it failed

A shrinking market and project start delays caused losses that, with a £10m pension deficit, left negligible net assets; the pension restructuring offer was rejected and the group failed.

Main reason: Market downturn
Delays
Losses on contracts
Cash flow
Group company failed

Our summary of the reasons given in the administrators' proposals. These record the administrators' and directors' account of what happened.

An administrator, a licensed insolvency practitioner, takes control of the company to try to rescue it, sell the business or get a better result for creditors than a liquidation.

Previously known as: SIMONS CONSTRUCTION GROUP LIMITED.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

31 March 2018
Last accounts filed were made up to this date
19 months later
29 October 2019
Administration started
3 years later
22 April 2022
Administration ended
22 April 2022
Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Mar 2018: £99.4m; Accounts at Companies House
Profit before tax, year to Mar 2018: £970k; Accounts at Companies House
Staff, year to Mar 2018: 116; Accounts at Companies House
Net assets, year to Mar 2018: £6.3m; Accounts at Companies House
Owed to unsecured creditors (estimated), as at 29 October 2019: £54.1m; of which trade creditors £12.6m. HMRC owed £527k. Expected return to unsecured creditors: expected, amount not yet known; Administrators' proposals (includes a £30.3m pension scheme liability)

The last accounts filed were full accounts made up to 31 March 2018, 19 months before it went into administration.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

We're writing plain-English reports on major construction failures: who was involved, why it happened, the warning signs and how long they were visible, and what to look out for next time.

In the news

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