Simpson Millar, a leading PI firm in the UK has announced that it will be undergoing a restructuring, resulting in between 100 and 120 jobs being made redundant.[i]
The firm was once owned by listed company, Fairpoint Group Plc but was sold off to investment firm Doorway Capital who have since invested £7million into Simpson Millar. We reported on the acquisition of Simpson Millar by Fairpoint Group in edition 107 of BC Disease News (here). Following several more acquisitions, last year, Fairpoint’s share price ‘plummeted’ on the basis of ‘downgraded’ profit projections in a ‘turbulent’ 2017. At the time, Fairpoint emphasised that:
‘Whilst we are saddened that this has been a difficult time for Fairpoint Group, it is business as usual at Simpson Millar and we do not anticipate any significant changes as a result of Fairpoint Group’s announcement’.
This appears to not have been the case and Simpson Millar’s turnover for the 2016/17 financial year was estimated at £32.5million with net profit said to have risen to around £1m.
Greg Cox, managing partner at Simpson Millar, said: ‘It is never an easy decision to put members of the team at risk of redundancy. The business has been starved of investment over the last three years under its ownership by Fairpoint Group PLC, which has resulted in a fall in projected revenue for 2018’.
[i] Alex Taylor, ‘Simpson Millar to Cut 20% of Staff in Redundancy Consultation’ (The Lawyer 12 December 2017)< https://www.thelawyer.com/simpson-millar-to-cut-20-of-staff-in-redundancy-consultation/> accessed 14 December 2017.