ALLAN CORFIELD STRUCTURES LIMITED

Executive Summary

Allan Corfield Structures Limited operates as a niche micro-entity within the UK’s specialist structural engineering sector but currently faces financial challenges evidenced by negative working capital and declining net assets. While sector trends offer growth opportunities driven by infrastructure and sustainability demand, the company’s liquidity constraints and limited scale hinder its competitiveness compared to typical small engineering consultancies. Strengthening financial stability and leveraging synergies with its associated architectural firm are critical for enhancing its market position.

ALLAN CORFIELD STRUCTURES LIMITED - Analysis Report

Company Number: SC683864

Analysis Date: 2025-07-29 20:22 UTC

1. Industry Classification
   Allan Corfield Structures Limited operates within the "Other engineering activities" sector, SIC code 71129. This classification typically encompasses specialist engineering services such as structural engineering consultancy and design. Companies in this sector often provide technical expertise for construction, infrastructure projects, and bespoke engineering solutions. The sector is characterized by a mix of micro to large firms, with significant emphasis on technical know-how, innovation, and strong client relationships.

2. Relative Performance
   As a micro-entity, Allan Corfield Structures Limited’s financials reflect typical small-scale operations with minimal fixed assets (£2,180 in 2023) and a current asset base of around £48,472. However, the company shows a deteriorating liquidity position, with current liabilities rising substantially from £45,464 in 2022 to £121,626 in 2023, resulting in a net current liability position of £67,132. This negative working capital contrasts with healthier peers in the engineering consultancy sector, where maintaining positive working capital is common to ensure operational stability. The net asset position has also worsened considerably, with shareholders’ funds moving from a negative £12,987 in 2022 to a negative £65,194 in 2023, indicating accumulated losses or possible funding gaps. Compared to industry benchmarks for similar-sized engineering consultancies, this financial health is below average, as many micro and small engineering firms sustain modest positive equity and manage liabilities more conservatively.

3. Sector Trends Impact
   The engineering consultancy sector in the UK is influenced by ongoing infrastructure investment, sustainability demands, and digital transformation. Post-pandemic recovery has increased demand for structural engineering services, especially in residential and commercial construction, renewable energy projects, and retrofitting works. However, inflationary pressures on wages, material costs, and supply chain disruptions have strained smaller firms’ cash flows. Additionally, competitive bidding and client payment terms can challenge liquidity, particularly for micro entities lacking broader capital reserves. The shift towards integrated BIM (Building Information Modelling) and sustainable design also requires continuous investment in talent and technology, which may be financially demanding for companies with limited resources like Allan Corfield Structures Limited.

4. Competitive Positioning
   Allan Corfield Structures Limited appears to be a niche player focusing on specialist structural engineering activities, likely leveraging the expertise of its controlling director and associated architectural firm (Allan Corfield Architects Ltd). Strengths include proximity to a focused client base and potential synergies through the related architecture business. However, the company's increasing net liabilities and negative working capital position represent significant weaknesses against competitors who typically maintain stronger balance sheets and liquidity. The small scale and micro-entity status may limit access to larger contracts and capital investment, placing the company at a competitive disadvantage versus more established engineering consultancies with broader service offerings and financial resilience. To improve competitive positioning, the company would need to stabilize its finances, possibly by improving receivables management, controlling payables, or securing additional funding.