GREATER MANCHESTER SKIP HIRE LTD
Executive Summary
Greater Manchester Skip Hire Ltd operates as a small, regionally focused player in the UK’s non-hazardous waste collection sector, showing solid growth in fixed assets and net worth since its 2020 inception. While the company is expanding and improving liquidity, it faces typical industry challenges such as working capital constraints and regulatory pressures. Positioned as a niche provider, its continued success will depend on managing cash flow efficiently and adapting to sustainability-driven market dynamics amidst competitive regional waste management firms.
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This analysis is opinion only and should not be interpreted as financial advice.
GREATER MANCHESTER SKIP HIRE LTD - Analysis Report
Industry Classification
Greater Manchester Skip Hire Ltd operates primarily within SIC code 38110, defined as the "Collection of non-hazardous waste." This sector is a sub-segment of the broader waste management industry, which includes waste collection, transportation, processing, recycling, and disposal of non-hazardous materials. Key characteristics of this sector include high capital intensity due to equipment and vehicle requirements, regulatory compliance obligations, and strong ties to the construction and manufacturing sectors which generate significant waste volumes.Relative Performance
As a private limited company incorporated in late 2020, Greater Manchester Skip Hire Ltd is a micro to small-sized player within the waste collection niche, focusing on skip hire services. The company’s financial statements show growth in net assets from £19k in 2020 to nearly £108k in 2023, indicating capital accumulation and likely reinvestment in fixed assets (notably plant and machinery which rose to £198k net book value in 2023). However, the company has persistently negative net current assets (-£11k in 2023), reflecting working capital constraints common in asset-heavy, invoicing-based businesses where debtor days can extend. The increase in cash and trade debtors from 2022 to 2023 suggests improved liquidity and revenue growth. Compared to typical industry benchmarks, where efficient cash conversion and strong working capital management are critical, this indicates gradual operational scaling but still a need for tighter short-term liquidity control.Sector Trends Impact
The UK waste collection and skip hire market is influenced by increasing environmental regulations and a strong push towards recycling and waste diversion from landfills. Demand drivers include construction industry activity, renovation projects, and local authority contracts. Trends such as digitalization of fleet management, adoption of greener vehicles, and customer demand for sustainable waste solutions shape competitive dynamics. For a company like Greater Manchester Skip Hire Ltd, these trends imply opportunities to differentiate via environmental compliance and service efficiency but also require ongoing investment in equipment upgrades and compliance measures, impacting capital expenditure and operational costs.Competitive Positioning
Greater Manchester Skip Hire Ltd is positioned as a niche regional player within the Greater Manchester area, evidenced by its relatively small size and focused service offering. The directors’ backgrounds (project management and HGV driving) imply hands-on operational involvement rather than large-scale corporate management. Their capital structure is modest, with only £2 in share capital but growing retained earnings, indicating reliance on internal financing and possibly debt, as shown by bank loans. The company’s tangible fixed assets and loan profile suggest a leveraged position typical for small skip hire firms investing in plant and vehicles. Strengths include steady asset growth, expanding debtor base, and an active presence in an essential service sector. Challenges include negative working capital, competitive pressures from larger regional waste management firms, and the need to comply with evolving regulations without the scale economies enjoyed by larger incumbents.
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