ALFRED DEVELOPMENTS LTD

Executive Summary

Alfred Developments Ltd operates as a micro-entity within the UK building development sector, facing typical early-stage financial challenges including negative net assets and high liabilities relative to its modest asset base. Current market conditions characterized by rising costs and regulatory demands place additional pressure on small developers. While the company benefits from a streamlined ownership structure, it remains a niche player with limited scale and financial resilience compared to larger industry competitors.

ALFRED DEVELOPMENTS LTD - Analysis Report

Company Number: 14469569

Analysis Date: 2025-07-20 13:12 UTC

1. Industry Classification

Alfred Developments Ltd operates within SIC code 41100, which is classified as "Development of building projects." This sector primarily encompasses companies engaged in construction project development, including residential, commercial, and industrial buildings. Key characteristics of this sector include high capital intensity, project-based revenue streams, exposure to property market cycles, and regulatory compliance related to planning and construction standards. The sector is also sensitive to macroeconomic factors such as interest rates, housing demand, and government infrastructure spending.

2. Relative Performance

Alfred Developments Ltd is categorized as a micro-entity with an account reference date of 30 November 2024. The financials reveal:

• Fixed Assets grew from £210,310 in 2023 to £446,629 in 2024, indicating asset acquisition or capital expenditure.
• Current assets remain minimal (£169 in 2024), while current liabilities increased to £426,319.
• Net current liabilities worsened from -£13,280 (2023) to -£27,671 (2024).
• Net assets are negative at -£7,361, deteriorating from -£2,970 the previous year.
• Shareholders’ funds mirror net assets (-£7,361).

Compared to industry norms, this company’s negative net asset position and escalating liabilities suggest financial strain, which is not uncommon for early-stage property developers but is below typical sector benchmarks where positive equity and working capital are preferred. The company’s single-employee operation and micro-entity status indicate a very small scale relative to typical building project developers, many of which operate with larger teams and greater capital resources.

3. Sector Trends Impact

The UK building development sector has been experiencing significant fluctuations due to post-pandemic supply chain disruptions, increasing material costs, and evolving government housing policies. Rising interest rates and inflationary pressures have led to higher borrowing costs, which can adversely affect developers with high leverage. Additionally, regulatory tightening around sustainability and building safety (e.g., post-Grenfell fire safety regulations) imposes additional compliance costs. These factors can strain cash flow and delay project timelines. Alfred Developments Ltd’s financials reflect typical early-stage challenges in managing working capital and financing fixed assets amid these market headwinds.

4. Competitive Positioning

Alfred Developments Ltd is a niche micro-entity player in a competitive industry dominated by larger firms with more extensive financial and operational resources. Its negative net asset base and net current liabilities highlight vulnerabilities in liquidity and financial stability compared to sector leaders who maintain stronger balance sheets and diversified project portfolios. The company’s single director ownership structure (Navdeep Gidda holding 75-100% control) suggests centralized decision-making but could limit access to external capital and expertise. Strengths may include agility and a lower cost base, but weaknesses are apparent in scale, financial resilience, and potential access to finance, which are critical in the capital-intensive development sector.