LGRM ENGINEERING PROJECTS LTD

Executive Summary

LGRM Engineering Projects Ltd is a small, founder-controlled engineering consultancy specializing in niche industrial and civil engineering design. While its focused expertise and lean structure provide strategic agility, recent financial deterioration flags liquidity and operational risks that must be addressed. Growth can be accelerated by expanding service offerings, scaling workforce capabilities, and forging strategic partnerships to penetrate broader markets. However, mitigating financial volatility and key person dependence are critical to sustaining competitive positioning and enabling expansion.

LGRM ENGINEERING PROJECTS LTD - Analysis Report

Company Number: 14120375

Analysis Date: 2025-07-29 14:15 UTC

1. Market Position
   LGRM Engineering Projects Ltd operates as a micro-sized private limited company within the niche of engineering design and civil engineering projects. Given its recent incorporation in 2022 and small scale (2 employees), it currently occupies a modest position in a highly specialized segment of the UK engineering industry. Its focus on engineering design for industrial processes and other civil engineering projects suggests a targeted market presence rather than broad industry coverage.

2. Strategic Assets

• Niche engineering expertise: The company’s SIC classifications (71129, 71121, 42990) indicate capabilities in engineering design and unique civil engineering projects, which can be a competitive moat in specialized industrial sectors.
• Ownership and control concentration: Miss Carrie Leanne Macfarlane holds 75-100% ownership and voting rights, enabling swift decision-making and strategic agility without shareholder conflicts.
• Low overhead structure: With only two employees and micro account status, operational costs are likely minimal, allowing lean management and potential for flexibility in project execution.
• Local presence: Registered and operating in Accrington, the company may benefit from regional knowledge and connections in the North West England engineering market.

3. Growth Opportunities

• Leverage engineering design capability: Expanding service offerings in engineering consultancy and industrial process design can attract larger contracts and diversified clients.
• Scale workforce and capabilities: Incrementally increasing skilled personnel can enable the company to pursue more complex projects and enhance capacity.
• Broaden market reach: Targeting adjacent civil engineering segments or geographical markets beyond Accrington can drive revenue growth.
• Strategic partnerships: Collaborations with construction firms or industrial manufacturers can generate referral business and integrated project opportunities.
• Investment in technology: Adoption of advanced engineering software and project management tools could improve efficiency and competitiveness.

4. Strategic Risks

• Financial volatility: The latest financial year shows a sharp decline in net current assets from £17,005 (2023) to a negative £5,938 (2024), and net assets reduced by over 65% to £12,756. This signals liquidity constraints and potential cash flow stress that may hamper operational stability and growth investments.
• Dependence on limited personnel: With only two employees, key person risk is high; loss or unavailability of the managing director or critical staff could disrupt business continuity.
• Market competition: The engineering consultancy and civil engineering sectors are competitive with established firms; limited scale and resources may restrict market penetration.
• Client concentration risk: Without detailed client data, there is a potential risk if revenues depend heavily on a few contracts or clients, which could lead to volatility.
• Regulatory and compliance complexity: Engineering projects often require adherence to stringent standards and regulations; any lapses could lead to reputational damage or financial penalties.