ANGUS CONSTRUCTION DEVELOPMENTS LTD

Executive Summary

Angus Construction Developments Ltd is a micro-entity positioned as a niche player within the UK domestic construction sector, characterized by modest financial resources and a small workforce. While recent improvements in liquidity and net assets are positive, the company remains financially constrained relative to typical industry participants. Ongoing sector challenges such as cost inflation and regulatory demands pose risks, but the firm’s local focus may provide resilience in a competitive market.

ANGUS CONSTRUCTION DEVELOPMENTS LTD - Analysis Report

Company Number: SC670837

Analysis Date: 2025-07-19 12:24 UTC

1. Industry Classification
   Angus Construction Developments Ltd operates within SIC code 41202, identified as the "Construction of domestic buildings" sector. This sector primarily involves residential property development, renovation, and construction activities. Characteristics of this industry include project-based revenue, reliance on skilled labor, sensitivity to housing market trends, and regulatory compliance related to building standards and permits.

2. Relative Performance
   As a micro-entity construction company, Angus Construction Developments Ltd’s financial scale is modest compared to typical industry benchmarks. For the fiscal year ending August 2024, the company reported fixed assets of £50,786 and net assets of £10,224, which is low relative to average small-to-medium enterprises (SMEs) in domestic construction, where fixed assets and net equity usually run into hundreds of thousands or millions. The company recently improved its net current assets from a negative £96,711 in 2023 to a positive £28,415 in 2024, indicating better short-term liquidity management. However, the substantial long-term liabilities (£68,977) relative to net assets suggest financial leverage and potential cash flow constraints. The company’s average workforce of 3 employees is consistent with micro-entity size but small compared to typical small construction firms (10-50 employees).

3. Sector Trends Impact
   The UK domestic construction sector has been navigating challenges including rising material costs, labor shortages, and fluctuating demand due to economic uncertainty and interest rate changes affecting mortgage affordability. Post-pandemic recovery and government incentives for housing supply have provided some tailwinds. Angus Construction Developments Ltd, being a small player, is vulnerable to these macroeconomic pressures but may benefit from local niche demand in Dundee and surrounding areas. Additionally, sustainability and regulatory compliance pressures are increasing costs and complexity in domestic building projects, which could impact margins for smaller firms without economies of scale.

4. Competitive Positioning
   Angus Construction Developments Ltd appears to be a niche local player focused on small-scale domestic projects. Its micro-entity status and modest asset base limit its ability to compete with larger regional or national construction firms that benefit from larger capital resources, broader workforce, and diversified project portfolios. Strengths include potentially agile decision-making and close local market knowledge. However, weaknesses include limited financial resilience, modest fixed asset investment suggesting limited equipment or property holdings, and relatively high liabilities indicating dependency on external financing or trade credit. Compared to typical industry norms, the company’s net asset volatility (-£191,879 in 2023 improving to £10,224 in 2024) suggests financial instability in prior periods, which may affect supplier and client confidence.