TAILOR ENGINEERING GROUP LTD

Executive Summary

Tailor Engineering Group Ltd operates as a niche engineering design and consultancy firm within a highly specialised sector. While it maintains a positive net asset position, recent financial contractions signal operational and liquidity challenges relative to typical small engineering consultancies. To remain competitive, the company may need to address working capital constraints and adapt to technological and market trends shaping the engineering consultancy landscape.

TAILOR ENGINEERING GROUP LTD - Analysis Report

Company Number: 13038792

Analysis Date: 2025-07-20 12:04 UTC

1. Industry Classification
   Tailor Engineering Group Ltd operates primarily within the "Specialised Design Activities" (SIC 74100), "Other Engineering Activities" (SIC 71129), and "Engineering Related Scientific and Technical Consulting Activities" (SIC 71122) sectors. These classifications place the company in the niche segment of engineering consultancy and design services, which typically involves bespoke technical solutions, innovation in design, and advisory roles for complex engineering projects. This sector is characterised by high reliance on technical expertise, innovation, and client-specific project delivery rather than mass production.

2. Relative Performance
   The company is a micro or small private limited firm given its modest balance sheet size (£9,769 shareholders’ funds in 2024), low share capital (£100), and a single employee (the director). Compared with industry peers, engineering consultancies often scale with project size and client base; larger competitors usually report higher turnover and assets. Tailor Engineering Group Ltd’s financials show a significant reduction in net current assets from £78,166 in 2023 to £8,811 in 2024, and a corresponding decrease in cash and debtors, indicating either reduced activity, client payment delays, or working capital constraints. While the company maintains positive working capital, the shrinkage suggests operational challenges or strategic scaling down. This performance is below typical small engineering consultancies, which generally maintain stronger liquidity ratios and asset bases to support ongoing consultancy engagements.

3. Sector Trends Impact
   The specialised engineering and design consultancy sector is currently influenced by several trends: digital transformation (BIM, AI-driven design tools), sustainability and green engineering, and demand fluctuations linked to broader economic cycles (infrastructure investment, manufacturing changes). Smaller firms like Tailor Engineering Group Ltd may face pressure from larger consultancies offering integrated digital solutions and scalable resources. Conversely, niche players can capitalise on specialised expertise and close client relationships. However, the company’s declining asset and cash position may limit its ability to invest in new technologies or expand services, potentially impacting competitiveness as market demands evolve toward innovative, tech-enabled solutions.

4. Competitive Positioning
   Tailor Engineering Group Ltd appears to be a niche player with a strong technical focus, likely relying on the director’s engineering expertise. Strengths include a focused business model and potentially personalised client service. Weaknesses evident from financials include limited financial scale, reduced liquidity, and a very small workforce, which can constrain ability to bid for larger projects or diversify client base. Compared to typical small engineering consultancies, which often have multiple staff and stronger recurring revenue, this company may face challenges in scaling and maintaining market presence. Its reliance on director advances and related party debt (e.g., significant debtor balance from Tailor Engineering NZ Ltd) introduces additional financial risk and dependency on related entities.