R&G MODERN HOME IMPROVEMENTS LTD

Executive Summary

R&G Modern Home Improvements Ltd is a micro-sized specialist contractor in roofing and glazing within the UK construction sector, exhibiting a lean financial and operational profile typical of small local firms. While benefiting from steady demand in home improvements, the company’s minimal equity base and reliance on director loans constrain its competitive agility amid rising material costs and regulatory changes. Positioned as a niche player, its scale and capital structure place it behind larger SMEs but allow for focused, flexible operations in a fragmented and cost-sensitive market.

R&G MODERN HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 13110433

Analysis Date: 2025-07-20 12:14 UTC

1. Industry Classification
   R&G Modern Home Improvements Ltd operates primarily in the UK construction and home improvement sector, classified under SIC codes 43910 (Roofing activities) and 43342 (Glazing). These segments are specialised trades within the broader construction industry, focusing on roofing installation, repair, and glass-related services such as window fitting. This sector is characterised by a fragmented market structure dominated by numerous small to medium-sized enterprises (SMEs), often operating locally or regionally. Typical industry challenges include seasonal demand fluctuations, input cost volatility (notably for materials like glass and roofing products), and reliance on skilled labour.

2. Relative Performance
   Given its financial data and structure, R&G Modern Home Improvements Ltd is a micro to small enterprise. With fixed assets around £14.5k and net current assets of roughly £15.7k as of January 2024, the company maintains a modest asset base. Its net assets stand at just £2, which is minimal and suggests very low equity or possibly that liabilities closely match assets. The company also carries a significant director’s loan (£30.3k), a common financing method in small private firms but indicative of limited external funding. Compared to typical roofing and glazing SMEs, which often report small positive net assets and moderate liquidity, R&G shows limited capitalisation and a very lean balance sheet. The company’s cash position (£26.2k) and trade debtors (£19.2k) indicate reasonable short-term liquidity relative to its scale. Employee numbers (average 2) align with a micro-business profile, smaller than many local competitors who may employ 5-10 workers.

3. Sector Trends Impact
   The roofing and glazing sectors have experienced mixed trends recently. Post-pandemic recovery has spurred home renovation demand, supporting growth opportunities for firms like R&G. However, inflationary pressures on materials (e.g., timber, glass, metals) and labour shortages have increased operational costs and project timelines industry-wide. Additionally, increased regulatory focus on building safety and energy efficiency (e.g., new insulation standards) has raised compliance costs but also opened new service niches. Environmental sustainability trends push demand for greener roofing and glazing solutions, which may require investment in new skills and technologies. The company’s limited asset and financial base may constrain its ability to invest in these emerging areas, potentially limiting competitive differentiation.

4. Competitive Positioning
   R&G Modern Home Improvements Ltd operates as a niche player within the roofing and glazing trades, serving likely local or regional markets around Ipswich. It does not exhibit the scale or capital strength of larger SMEs or specialist contractors with broader service portfolios. The reliance on director loans rather than external equity or bank finance suggests limited access to capital markets, common for micro-businesses but a potential vulnerability during economic downturns or cash flow stresses. The company’s small workforce and asset base imply a focus on direct labour-intensive project execution rather than capital-intensive operations. This lean model can offer flexibility and cost efficiency but may limit capacity to scale or undertake larger contracts. Compared to typical competitors who may have stronger net assets and diversified financing, R&G’s financials reflect a business at an early growth or consolidation stage, with modest financial resilience.

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