QUALITY PLASTERWORK & RENDERING LTD

Executive Summary

QUALITY PLASTERWORK & RENDERING LTD is a micro-entity specialist in niche construction finishing trades, facing financial distress as evidenced by sharply reduced net assets and negative working capital, atypical for its sector peers. Sectoral inflation and supply chain issues likely contribute to its weakened position, limiting its ability to compete effectively beyond its micro-scale local niche. Strengthening liquidity and operational resilience will be critical for this company to navigate current market headwinds within the specialised construction sector.

QUALITY PLASTERWORK & RENDERING LTD - Analysis Report

Company Number: 13160577

Analysis Date: 2025-07-29 20:51 UTC

1. Industry Classification

QUALITY PLASTERWORK & RENDERING LTD operates under SIC code 43999, categorised as "Other specialised construction activities not elsewhere classified." This sector includes niche construction services such as plastering, rendering, and other finishing trades that support broader building projects but do not fall into general construction or civil engineering categories. Characteristics of this sector include reliance on skilled labour, project-based work, and exposure to construction market cycles influenced by residential and commercial building demand, regulatory standards for property finishing, and material cost fluctuations.

2. Relative Performance

As a micro-entity incorporated in 2021, QUALITY PLASTERWORK & RENDERING LTD is a very small player within the specialised construction sub-sector. The latest financials for the year ending January 2024 show a significant decline in net assets from £80,451 in 2023 to £970, indicating financial distress or a major write-down. Current liabilities increased markedly to £42,355, surpassing current assets of £27,046, resulting in a negative net current asset position of £15,309, which is atypical for healthy construction subcontractors who generally maintain positive working capital to fund ongoing projects.

The fixed assets increased from £2,602 to £23,760, suggesting recent capital investment in equipment or tools, possibly financed by short-term debt, given the rise in creditors. The company employed on average only 1 person in 2024, reflecting micro-scale operations, likely owner-managed or subcontracted, which is common in this niche. Compared to sector norms where small specialised construction firms maintain modest but positive working capital and stable equity, this company’s financial position is weaker than typical peers.

3. Sector Trends Impact

The specialised construction activities sector has faced challenges recently due to supply chain disruptions, rising costs of raw materials (e.g., plaster, cement, aggregates), and labour shortages post-Brexit. Inflationary pressures have squeezed margins, especially for micro and small enterprises lacking scale to absorb cost increases. Additionally, demand fluctuations in residential refurbishment and new build projects amid economic uncertainty can reduce workload and cash flow stability. The company’s negative working capital and asset write-down may reflect these sector headwinds.

Conversely, increased government focus on housing repairs and energy efficiency retrofits could offer future growth opportunities if the company can stabilise its finances. However, competition from both larger contractors with economies of scale and other niche specialists remains intense.

4. Competitive Positioning

QUALITY PLASTERWORK & RENDERING LTD is clearly a niche micro-entity player, likely serving local or specific contract-based plastering/rendering needs in Hertfordshire. Strengths include agility and low overheads typical of micro firms. However, its recent financial deterioration, negative working capital, and minimal staffing suggest vulnerability to cash flow shocks and limited capacity to scale or absorb operational risks.

Compared to typical small specialised construction firms, which maintain positive net assets and working capital to manage project cycles, this company’s financial structure raises concerns over liquidity and sustainability. The increase in fixed assets might indicate a strategic investment, but funding through increased short-term liabilities without corresponding current assets growth could strain operations.

In summary, QUALITY PLASTERWORK & RENDERING LTD operates in a highly competitive, cost-sensitive niche within construction finishing trades. Its recent financials reveal stress inconsistent with sector norms for stable small contractors, reflecting broader sector challenges including inflationary pressures and market uncertainty.