MOOD COLOUR LIMITED

Executive Summary

Mood Colour Limited is a micro-entity specializing in building completion and finishing services, exhibiting typical financial metrics for a newly established local trade business. The company has demonstrated modest growth in working capital and staffing, positioning itself as a niche player within a fragmented and competitive sector influenced by construction market trends and sustainability demands. To enhance competitiveness, leveraging local reputation and digital marketing while managing operational scale will be key.

MOOD COLOUR LIMITED - Analysis Report

Company Number: 13667142

Analysis Date: 2025-07-20 11:45 UTC

1. Industry Classification

Mood Colour Limited operates in the "Other building completion and finishing" sector, classified under SIC code 43390. This sector typically involves specialized trades in the construction industry, such as painting, decorating, plastering, and other finishing services that complete building projects. Companies in this sector often serve both residential and commercial clients, providing essential services that improve the aesthetic and functional qualities of buildings. The market is characterized by a large number of micro and small enterprises, fragmented competition, and reliance on local reputation and client relationships.

2. Relative Performance

As a micro-entity incorporated in late 2021, Mood Colour Limited’s financial data reflect typical characteristics of a start-up business in this sector. The company’s net current assets rose from £1,666 in 2022 to £7,491 in 2023, indicating an improvement in working capital and liquidity. Shareholders’ funds increased correspondingly, signaling modest growth in retained capital. Employing an average of 2 persons in 2023 (up from 1 in 2022) aligns with the micro business profile common in this sector, where labor is the primary input.

Compared to typical micro-businesses in building finishing services, Mood Colour’s financial scale and asset base are within expected ranges. However, the absence of turnover figures limits detailed profitability analysis. The company’s balance sheet shows no long-term liabilities or fixed assets, which is common among small decorators who may rent equipment or subcontract specialized tasks.

3. Sector Trends Impact

The building completion and finishing sector is influenced by broader construction market dynamics, including housing demand, commercial real estate development, and renovation activity. In recent years, government incentives for home improvement and the rise in commercial refurbishment projects have supported demand. However, challenges include fluctuating material costs, skilled labor shortages, and competitive pricing pressures.

Sustainability trends are increasingly important, with clients favoring environmentally friendly paints and finishes, and firms adopting low-VOC (volatile organic compounds) products. Digital marketing and online presence also play a growing role in customer acquisition for local service providers.

Given its small scale and local focus, Mood Colour Limited likely benefits from sustained residential demand in the Wakefield area but may face competitive pressures from numerous similar small firms.

4. Competitive Positioning

Mood Colour Limited is a niche player within the local building finishing market, operating as a micro private limited company with direct control held by a single director/shareholder. This structure allows for flexible decision-making but limits access to capital for rapid expansion. The company’s increasing net assets and employee base suggest cautious growth.

Strengths include low overheads, personalized service, and the ability to respond quickly to local market needs. Weaknesses relative to larger competitors include limited scale, absence of significant fixed assets or financial reserves, and potentially constrained marketing reach.

In comparison to sector norms, Mood Colour’s financials are typical for a start-up micro business in this trade. To improve competitive positioning, the company could focus on building a strong local brand, leveraging digital channels, and possibly diversifying service offerings to include eco-friendly finishes or expanded maintenance contracts.