D & A APPLIANCE DISTRIBUTION LIMITED

Executive Summary

D & A Appliance Distribution Limited operates as a micro-entity in the UK wholesale electrical appliance sector, characterized by a very small scale and limited financial resources. Compared to typical industry players, it shows a constrained working capital position and modest equity, indicative of niche or startup status rather than a market leader. Current market dynamics, including increased demand for smart appliances and supply chain pressures, pose challenges that the company must address to improve competitiveness and financial stability.

D & A APPLIANCE DISTRIBUTION LIMITED - Analysis Report

Company Number: 12489807

Analysis Date: 2025-07-20 14:19 UTC

1. Industry Classification
   D & A Appliance Distribution Limited operates primarily in the wholesale sector under SIC code 46439, which encompasses the wholesale of radio, television goods, and electrical household appliances, excluding media formats and playback equipment. This sector typically involves bulk distribution of consumer electronics and household electrical goods to retailers or large-scale buyers. Key characteristics of this sector include high inventory turnover, reliance on supplier relationships, and sensitivity to consumer demand cycles and technological innovation in appliances.

2. Relative Performance
   The company is classified as a micro-entity, with the most recent financials showing net assets of £12,836 and shareholders' funds of the same amount as of February 2024. Current assets have dropped significantly from £1.4M in 2023 to £214K in 2024, while current liabilities also decreased but remain substantial at £1.57M. The net current assets have declined from over £1.1M to £55K in the same period. Such volatility and relatively low equity base are not typical for stable businesses in this wholesale sector, which often operate with modest margins but maintain stronger working capital positions to manage inventory and supplier payments. The company’s micro classification and minimal staff (average 1 employee) indicate a very small-scale operation, likely a niche or startup phase player rather than an established market participant.

3. Sector Trends Impact
   The wholesale distribution of electrical appliances is influenced by trends such as increasing consumer demand for smart and energy-efficient appliances, supply chain disruptions, and price competition from online retailers. Brexit-related customs and regulatory changes have also affected import costs and delivery times in the UK wholesale sector. Additionally, the ongoing shift toward e-commerce has pressured traditional wholesalers to adapt digital capabilities. Given D & A Appliance Distribution Limited’s low asset base and shrinking current assets, it may face challenges capitalizing on these trends without scaling operations or investing in technology and supply chain resilience.

4. Competitive Positioning
   D & A Appliance Distribution Limited appears to be a small-scale, private limited company operating with very limited capital and minimal employee resources, positioning it as a niche or follower rather than an industry leader. Larger competitors in the UK wholesale appliance sector typically demonstrate stronger balance sheets, greater working capital, and broader distribution networks. The company’s recent financial contraction suggests potential liquidity constraints, which could impair supplier negotiations and inventory procurement, critical for competitiveness in this sector. However, being a micro-entity may allow for operational flexibility and low overheads, which could be advantageous if targeting specialized market segments or regional customers. Without significant scale or capital, the company may find it difficult to compete on price or breadth of product range against established wholesalers.