FPC BUILD LTD

Executive Summary

FPC Build Ltd operates as a small, niche player within the UK domestic construction sector, facing liquidity and balance sheet challenges typical of early-stage construction firms. While the company maintains ongoing projects and has posted a small profit, its negative net assets and reliance on related-party loans highlight financial vulnerability amid sector cost pressures and regulatory changes. Strategic focus on improving working capital management and leveraging emerging demand for energy-efficient housing could enhance its competitive position.

FPC BUILD LTD - Analysis Report

Company Number: 13527021

Analysis Date: 2025-07-20 17:35 UTC

1. Industry Classification
   FPC Build Ltd operates within the SIC code 41202, classified as "Construction of domestic buildings." This sector encompasses companies engaged in the construction, renovation, and repair of residential properties, including houses and apartments. It is predominantly project-driven, highly competitive, and sensitive to economic cycles, housing demand, and regulatory changes such as building standards and environmental legislation.

2. Relative Performance
   FPC Build Ltd is a private limited company incorporated in 2021, currently classified as a small entity under UK company law, filing under the "Total Exemption Full" filing category. Its balance sheet for the year ended 31 March 2024 shows significant challenges: current assets stand at £820,757 against current liabilities of £927,861, resulting in net current liabilities of approximately £107,104. The company has negative shareholders' funds of £101,216. While the company reported a modest profit of £12,264 during the year, its net asset position remains negative, indicating undercapitalisation relative to its liabilities. This contrasts with typical small construction firms, which often maintain positive net current assets and shareholders’ funds to ensure liquidity and solvency. The relatively high level of work-in-progress (£793,933) suggests ongoing projects, but the negative working capital raises concerns over cash flow management and creditor pressure.

3. Sector Trends Impact
   The UK domestic construction sector has faced fluctuating demand due to macroeconomic factors including inflationary pressures, rising material and labour costs, and interest rate hikes affecting mortgage affordability. These factors can squeeze margins and delay project completions. Additionally, the sector is experiencing increased regulatory scrutiny around sustainability and energy efficiency, which may require additional investment in skills and materials. For a small player like FPC Build Ltd, these trends present both risks and opportunities. On one hand, rising costs and tighter credit conditions may exacerbate liquidity challenges; on the other, demand for energy-efficient housing renovations could offer niche growth avenues.

4. Competitive Positioning
   FPC Build Ltd appears to be a niche or micro player within the domestic construction sector, given its small size, single director operation, and concentrated ownership (75-100% controlled by Felix Peter Christian Hansen). The company’s financials suggest it is in a growth or early development stage but struggling with working capital management and balance sheet strength. Compared to typical small construction firms that maintain healthier liquidity ratios, FPC Build Ltd’s negative net current assets and shareholders' funds imply vulnerability to creditor action or cash flow disruptions. Its reliance on a substantial family loan (£841,523) classified within current liabilities signals dependency on related-party funding, which may not be sustainable long-term without improved operational cash flows. Strengths include a focused management structure and potential agility in project execution. Weaknesses include financial fragility, limited asset base, and exposure to sector volatility.