DAVID CHARLES BUILDING SERVICES LIMITED

Executive Summary

David Charles Building Services Limited operates as a micro-entity within the building completion and finishing sector, showing solid financial improvement since inception with positive net assets and strong working capital. As a niche local player, the company benefits from operational agility but faces typical challenges of limited scale and asset base common to micro-sized construction finishers. Sector trends such as labour shortages and rising costs present ongoing pressures, though the firm’s prudent financial management positions it well for steady participation in the local construction supply chain.

DAVID CHARLES BUILDING SERVICES LIMITED - Analysis Report

Company Number: SC689268

Analysis Date: 2025-07-29 21:03 UTC

1. Industry Classification
   David Charles Building Services Limited operates within the SIC code 43390, classified as "Other building completion and finishing." This sub-sector falls under the broader construction industry, specifically focusing on the final phases of building projects, such as interior finishing, plastering, decorating, and other ancillary trades. This sector is typically characterised by small to medium enterprises that provide specialised on-site services, often subcontracted by larger general contractors or directly engaged by property owners. The industry is competitive and fragmented, with many micro and small firms competing on local contracts.

2. Relative Performance
   As a micro-entity, David Charles Building Services Limited’s financial profile aligns with typical small-scale construction finishers. The company shows positive growth in net assets from a negative £2,747 in 2021 to £20,434 in 2024, indicating an improving financial position and operational stability. Current assets have more than doubled to £32,057, while current liabilities have increased moderately, resulting in a strong net current asset position of £19,442 as of March 2024. With only three employees on average, the firm maintains a lean operational structure, consistent with micro firms in this sector that rely on skilled labour but keep overheads low. Compared to industry norms, their equity base and working capital position are modest but healthy, reflecting prudent financial management. However, the very low fixed asset value (£992) suggests minimal investment in long-term equipment or property, typical for small finishers who rely primarily on labour rather than capital-intensive assets.

3. Sector Trends Impact
   The building completion and finishing sector is sensitive to overall construction activity, which is influenced by broader economic conditions such as housing demand, commercial development, and public infrastructure projects. Current trends impacting the sector include:

• Post-pandemic recovery in construction demand, although with regional variations.
• Rising input costs (materials and labour) which can squeeze margins.
• Increasing emphasis on sustainable and energy-efficient building practices, requiring adaptation in finishing techniques and materials.
• Labour shortages in skilled trades, pushing firms to focus on productivity and efficient project management.
  David Charles Building Services Limited, as a micro-sized firm, may benefit from localised demand and flexibility but also faces challenges in scaling and absorbing cost pressures prevalent in the sector.

4. Competitive Positioning
   In the competitive landscape, David Charles Building Services Limited appears as a niche local player, leveraging a small team and maintaining financial stability in a challenging market. Strengths include:

• Positive trajectory in net assets and working capital, suggesting improved liquidity and capacity to meet short-term obligations.
• Low overheads consistent with micro-entity norms, enabling competitive pricing.
• Experienced leadership with a director whose occupation is directly related (builder), ensuring operational insight.
  Weaknesses relative to larger competitors include:
• Limited asset base, restricting ability to invest in mechanisation or larger contracts.
• Small workforce may limit project size and scalability.
• Absence of audited financial statements could affect credibility for larger clients or public sector contracts.
  Overall, the firm fits the profile of a resilient micro enterprise that can capture local finishing contracts but may face constraints competing for larger or more complex projects against better-capitalised firms.