R&M PROPERTY SERVICES (SCOTLAND) LIMITED

Executive Summary

R&M Property Services (Scotland) Limited operates as a micro-entity in the building completion and finishing sector, facing significant financial challenges with a deteriorating net asset position and working capital deficits. The company’s small scale and negative equity place it at a competitive disadvantage within a sector experiencing cost pressures and market volatility. Stabilizing finances and expanding operational capacity will be critical to improving its position in this competitive and cyclical industry.

R&M PROPERTY SERVICES (SCOTLAND) LIMITED - Analysis Report

Company Number: SC678895

Analysis Date: 2025-07-29 20:23 UTC

1. Industry Classification
   R&M Property Services (Scotland) Limited operates under SIC code 43390, categorized as "Other building completion and finishing." This sector encompasses companies involved in the final stages of construction projects, including plastering, painting, decorating, joinery, and other finishing trades. Typically, companies in this industry are small to medium enterprises focusing on subcontracted works within residential, commercial, or industrial construction projects. The sector is characterized by project-based revenues, dependence on construction market cycles, and exposure to labour cost fluctuations.

2. Relative Performance
   The company is classified as a micro-entity, reflecting its small scale with a single employee (the director) and minimal filing requirements. Financially, R&M Property Services exhibits significant net liabilities over recent years: net assets dropped from a positive £17,363 in 2020 to negative £225,894 in 2023. Current liabilities dramatically exceed current assets, indicating working capital deficits that have doubled from roughly £106k in 2022 to over £206k in 2023. This negative net asset position and growing liabilities contrast with typical small building finishing firms that usually maintain modest positive equity and balanced current ratios due to ongoing project cash flows. The company's fixed asset base is minimal and declining, consistent with a service-focused model but limiting collateral for credit.

3. Sector Trends Impact
   The building completion and finishing sector is sensitive to overall construction activity, which in the UK has experienced volatility driven by economic uncertainty, inflationary pressures, and labour shortages post-Brexit. Rising raw material and labour costs squeeze margins, especially for smaller players without significant pricing power. Additionally, supply chain disruptions affect project timelines and cash flow. The company’s deteriorating financial position may partly reflect these pressures, as tighter credit conditions and delayed payments from contractors or clients could exacerbate liquidity challenges. However, ongoing demand in residential refurbishment and infrastructure projects could provide opportunities if operational and financial management stabilizes.

4. Competitive Positioning
   R&M Property Services is a niche micro-entity player within the building completion segment, likely operating with limited market reach and resources. Unlike larger competitors or established SMEs with stronger balance sheets and diversified client bases, this company’s highly negative net asset position signals financial distress risk. Its dependence on a single director and minimal staff constrains operational scalability and resilience. The absence of significant share capital and growing liabilities could impair supplier relationships and access to finance, putting it at a competitive disadvantage. To improve positioning, the company would need to bolster working capital, diversify contracts, and possibly seek external investment or partnerships to enhance its financial stability.