DELTALAND CONSTRUCTION LIMITED

Executive Summary

DELTALAND CONSTRUCTION LIMITED is a micro-entity operating in the competitive and fragmented UK roofing sector. While maintaining positive working capital, the company experienced a significant reduction in net assets over the latest financial year, highlighting potential operational or financial pressures typical for small-scale roofing contractors. Adapting to sector trends such as cost volatility and regulatory demands will be essential for sustaining its niche position amidst larger competitors.

DELTALAND CONSTRUCTION LIMITED - Analysis Report

Company Number: 13598634

Analysis Date: 2025-07-20 17:57 UTC

1. Industry Classification

DELTALAND CONSTRUCTION LIMITED operates under SIC code 43910, classified as "Roofing activities." This sector encompasses companies specializing in the installation, maintenance, and repair of roofing systems, including flat and pitched roofs, waterproofing, and related services. The roofing industry in the UK is typically fragmented, with many small to medium-sized enterprises (SMEs) serving local or regional markets. It is sensitive to broader construction sector trends, weather conditions, and economic cycles impacting new builds and refurbishment projects.

2. Relative Performance

As a micro-entity with turnover and asset size below typical SME thresholds, DELTALAND CONSTRUCTION LIMITED is positioned at the smallest scale within the roofing sector. Its financials for the year ending September 2024 show:

• Fixed assets of £4,850, indicating minimal investment in long-term equipment or property.
• Current assets of £186,769 against current liabilities of £183,060, yielding a modest net working capital of £3,709.
• Net assets of £8,559, a significant decrease from £81,530 in 2023, signaling a marked reduction in equity and financial buffer.
• Average employees: 2, consistent with micro-business norms.

Compared to industry benchmarks where established roofing firms often maintain stronger balance sheets with higher net assets and working capital ratios, DELTALAND's sharp decline in net assets could reflect operational challenges, reduced profitability, or increased liabilities. However, maintaining positive net current assets and solvency is a basic but crucial indicator that the company remains financially viable.

3. Sector Trends Impact

The roofing sector is influenced by several market dynamics:

• Construction Sector Volatility: Roofing demand is closely tied to residential and commercial construction activity. Economic uncertainty or downturns can suppress new projects, affecting revenues.
• Labour and Material Costs: Rising costs for skilled labour and raw materials (e.g., timber, metals, membranes) have pressured margins industry-wide.
• Sustainability and Regulation: Increasing emphasis on energy-efficient roofing solutions and compliance with building regulations can require investment and technical capability.
• Labour Shortages: Skills shortages in trades impact capacity and project timelines.

For DELTALAND, as a small player, these trends mean that margin pressures and competition from larger firms or subcontractors could be significant. The company's ability to adapt to evolving regulatory and sustainability requirements will be pivotal.

4. Competitive Positioning

Strengths:

• Small scale and lean employee base may afford operational flexibility.
• Being a private limited company with direct shareholder control (two key individuals each holding 25-50% shares and voting rights) can facilitate swift decision-making.
• Positive net working capital despite downturn suggests management of short-term obligations remains effective.

Weaknesses:

• The substantial decline in net assets from £81,530 to £8,559 within one year is a concern, potentially indicating cash flow issues, reduced profitability, or increased payables.
• Limited fixed assets may restrict capacity for scaling or handling larger contracts.
• Micro-entity status may limit access to financing or investment compared to larger competitors.
• Operating in a competitive, fragmented market with many SMEs means differentiation and securing contracts could be challenging.

Overall, DELTALAND appears to be a niche micro-entity player within the roofing sector, facing typical small business challenges including capital constraints and market competition. The company’s financial contraction signals a need to monitor liquidity and operational efficiency closely.