ALL ABOUT DRAINAGE LIMITED

Executive Summary

All About Drainage Limited is a micro-entity operating in the UK site preparation sector, showing typical characteristics of a small startup with limited assets and modest net equity. While improving its net asset position, it remains financially constrained with negative working capital, reflecting the challenges faced by micro firms in a competitive and cost-sensitive construction sub-sector. The company’s niche focus and lean structure provide operational agility but also expose it to risks from market fluctuations and limited scale economies.

ALL ABOUT DRAINAGE LIMITED - Analysis Report

Company Number: 13178343

Analysis Date: 2025-07-29 16:59 UTC

1. Industry Classification
   All About Drainage Limited operates primarily in the "Site preparation" sector (SIC code 43120). This sector encompasses activities such as land clearance, excavation, drainage installation, and preparation of building sites for construction. It is a sub-sector within the broader construction industry, which is typically characterized by project-based contracts, seasonal demand fluctuations, relatively low asset intensity compared to heavy construction, and a high dependency on skilled labor and local market conditions.

2. Relative Performance
   As a micro-entity incorporated in 2021, All About Drainage Limited’s financials are modest, with a net asset position of £996 as of March 2024, improving from a negative net asset base of -£1,713 in 2023. Fixed assets remain stable around £30k, indicating limited investment in heavy machinery or property. The current liabilities exceed current assets, resulting in a slight net working capital deficit (-£2,065), though this has improved from the previous year’s larger deficit (-£4,237). The company’s shareholder funds are minimal (£996), which is common for micro firms in this sector, especially those in early growth stages.

Industry benchmarks for site preparation companies vary widely by scale, but typical firms in this micro category often struggle with tight cash flows and limited asset bases. Larger competitors usually show stronger net asset positions, positive working capital, and higher turnover reflecting project scale. All About Drainage’s financial structure aligns with typical small startup firms in this space but lacks the liquidity buffers seen in more established players.

3. Sector Trends Impact
   The UK construction and site preparation sector has faced mixed dynamics recently. Post-pandemic recovery and government infrastructure initiatives have driven demand; however, supply chain disruptions, rising material and labor costs, and inflationary pressures have tightened margins. Environmental regulations and a growing emphasis on sustainable construction practices increasingly impact site prep firms, requiring investment in eco-friendly equipment and methods.

Micro companies like All About Drainage may benefit from localized demand for smaller-scale preparation and drainage projects, especially in residential refurbishment or smaller commercial developments. However, they are vulnerable to economic slowdowns or reductions in development activity, which can quickly impact cash flows given their limited financial reserves.

4. Competitive Positioning
   All About Drainage Limited appears to be a niche micro player focused on drainage-related site preparation. The company’s limited asset base and small employee count (average 2) suggest a lean operational model, likely targeting local or regional contracts rather than competing with larger national site prep contractors.

Strengths include low overheads and the ability to be agile in responding to small projects or bespoke drainage needs. The director’s substantial personal loans to the company indicate strong owner commitment and potential flexibility in financing operations.

Weaknesses are typical of micro firms: constrained working capital, limited scale to absorb cost fluctuations, and potentially less bargaining power with suppliers or clients compared to larger competitors. The company’s financials do not indicate significant growth or diversification yet, which could limit resilience against sector volatility.

Executive Summary