AVIJOT BUILDING SERVICES LTD

Executive Summary

AVIJOT BUILDING SERVICES LTD is a micro-entity operating in the domestic building construction sector, characterized by very modest financial resources and minimal workforce. While the company benefits from simplified reporting and agile management, its limited asset base and negative working capital position it as a financially fragile niche player vulnerable to sector challenges such as supply chain issues and labour shortages. Strengthening liquidity and scaling operations would be critical for improving competitive positioning within the UK domestic construction market.

AVIJOT BUILDING SERVICES LTD - Analysis Report

Company Number: 13596803

Analysis Date: 2025-07-20 15:19 UTC

1. Industry Classification:

AVIJOT BUILDING SERVICES LTD operates in the "Construction of domestic buildings" sector, classified under SIC code 41202. This sector primarily involves the construction, renovation, and repair of residential buildings such as houses and apartments. Key characteristics of this sector include project-based revenue streams, reliance on skilled labor, sensitivity to housing market cycles, and compliance with building regulations and safety standards.

2. Relative Performance:

The company is categorized as a micro-entity, reflecting its small scale with minimal filing requirements. Financially, AVIJOT BUILDING SERVICES LTD shows very modest asset levels with fixed assets around £6,656 and current assets of £8,420 as of 2024. The net assets have declined significantly to £53 in 2024 from £357 the previous year, indicating tight liquidity and minimal equity buffer. The company employs only one person, consistent with a micro-sized construction business.

Compared to typical micro entities in domestic construction, AVIJOT BUILDING SERVICES LTD's asset base and net equity are at the lower end of the spectrum. Many small construction firms maintain more substantial working capital and fixed assets such as tools and machinery. The company's net current assets are negative (£-6,603), which may suggest working capital constraints compared to industry norms where small builders often keep positive net current assets for operational flexibility.

3. Sector Trends Impact:

The domestic construction sector has been influenced recently by several trends impacting companies like AVIJOT BUILDING SERVICES LTD:

• Supply Chain Disruptions: Ongoing volatility in building materials prices and availability can squeeze margins for smaller firms.
• Labour Shortages: Skilled labour shortages in construction raise wage costs and impact project delivery timelines.
• Regulatory Pressure: Increasing building regulations and energy efficiency standards require investment in compliance.
• Housing Market Fluctuations: Variability in housing demand due to interest rates and economic conditions affects order books.
• Green Building: Growing demand for sustainable and energy-efficient homes may create opportunities but also require capital investment.

AVIJOT BUILDING SERVICES LTD, as a micro business with limited assets and workforce, may be vulnerable to these pressures, particularly supply chain and labour cost increases, given tight liquidity.

4. Competitive Positioning:

Strengths:

• The company benefits from a private limited company structure, limiting shareholder liability.
• Being a micro-entity allows simplified accounting and reporting obligations, reducing administrative overhead.
• The single director and sole shareholder structure can enable agile decision-making.

Weaknesses:

• Very limited asset base and working capital may restrict the ability to scale operations or absorb delays in payments.
• Small workforce limits operational capacity and ability to take on multiple or larger projects simultaneously.
• Negative net current assets and minimal shareholders’ funds suggest financial fragility compared to even small competitors who typically maintain stronger liquidity buffers.
• As a relatively new entity (incorporated 2021), the company might lack established market presence and reputation compared to longer-established peers.

Overall, AVIJOT BUILDING SERVICES LTD operates as a niche micro-sized player in the domestic construction sector, likely focusing on small-scale projects. Its financial position indicates constrained resources, which may limit competitiveness against better-capitalized small or medium-sized construction firms.