ALM TECHNICAL LTD

Executive Summary

ALM Technical Ltd operates as a small, niche player within the specialized engineering services sector, maintaining a solid liquidity position and conservative financial structure. While its reduced net assets and receivables suggest recent challenges in demand or contract volume, the company’s agile scale and focused operations align well with sector trends favoring bespoke technical expertise. Its positioning contrasts with larger, asset-intensive competitors, emphasizing consultancy and specialized solutions over volume engineering.

ALM TECHNICAL LTD - Analysis Report

Company Number: 12829308

Analysis Date: 2025-07-20 12:03 UTC

1. Industry Classification
   ALM Technical Ltd operates primarily within SIC code 71129, classified as "Other engineering activities." This sector encompasses specialized engineering services that do not fall under mainstream categories like civil, mechanical, or electrical engineering but may include niche technical consultancy, bespoke engineering solutions, and specialized design or maintenance services. Typically, companies in this segment are characterized by technical expertise, project-based work, and reliance on skilled personnel.

2. Relative Performance
   As a private limited company incorporated in 2020 and filing under the "Total Exemption Full" category for small entities, ALM Technical Ltd shows modest but stable financial metrics. The latest accounts for the period ending 31 January 2024 show net assets of £380,088 and net current assets of £379,369, down from £506,956 and £505,197 respectively in 2022. The company holds a relatively strong liquidity position with cash balances of £289,600. Compared to typical small engineering firms in this niche, these balance sheet figures indicate a sound working capital position and prudent management of current liabilities (£109,033 in 2024, down significantly from £421,026 in 2022). However, the reduction in debtors from £491,012 to £198,802 could indicate either a tightening in sales or improved collection efficiency. The small number of employees (average 2 in the latest period) aligns with a highly specialized or consultancy-based business model rather than a volume-driven engineering firm.

3. Sector Trends Impact
   The "Other engineering activities" sector is influenced by several trends: increasing demand for bespoke and technologically advanced engineering solutions, pressure on margins due to competitive tendering, a growing emphasis on sustainability and energy efficiency, and supply chain constraints impacting project delivery times. The UK engineering services market has seen recovery post-pandemic, but inflationary cost pressures and skilled labour shortages remain challenges. ALM Technical Ltd’s modest scale and liquidity position may enable agility in adapting to these trends, but the pressure to innovate and maintain competitive pricing in a niche market is intense.

4. Competitive Positioning
   ALM Technical Ltd appears to be a niche player rather than a market leader or follower in a large-scale engineering segment. Its small size and limited staff suggest a focus on specialized high-value engineering services rather than mass-market projects. Strengths include a healthy liquidity buffer and a controlled level of liabilities, which are advantageous in managing cash flow and operational risks. The company’s equity position (£380k) and the absence of long-term debt suggest a conservative financial approach, typical for small private technical firms. However, the decrease in net assets and receivables since 2022 could point to challenges in market demand or contract volume. Compared to industry norms where engineering firms may leverage more fixed assets and have larger workforces, ALM Technical’s asset base is minimal (only £959 in tangible fixed assets), highlighting its service-oriented nature rather than capital-intensive operations.