THE AUGHTON PROJECT LIMITED

Executive Summary

THE AUGHTON PROJECT LIMITED is a newly established micro-entity in the UK domestic construction sector, primarily engaged in building residential properties. Its financial profile, characterized by substantial fixed assets and long-term liabilities, is typical for early-stage developers focusing on asset acquisition rather than operational revenues. While the company benefits from asset-backed potential and lean management, it faces typical sector risks such as market volatility and funding constraints common among niche startup builders.

THE AUGHTON PROJECT LIMITED - Analysis Report

Company Number: 14958377

Analysis Date: 2025-07-29 13:43 UTC

1. Industry Classification
   THE AUGHTON PROJECT LIMITED operates within SIC code 41202, which corresponds to the "Construction of domestic buildings" sector. This industry primarily involves the building of residential properties such as houses, apartments, and other dwellings. It is characterized by project-based work, significant capital investment in fixed assets (land, materials, equipment), and a reliance on skilled labor. The sector is sensitive to economic cycles, housing demand, interest rates, and government policies on housing development.

2. Relative Performance
   As a newly incorporated micro-entity (incorporated June 2023), THE AUGHTON PROJECT LIMITED’s financials for the year ending June 2024 show fixed assets valued at £1.775 million, current assets of £100, and current liabilities nearly equal to the fixed assets at £1.775 million. Net assets stand at a minimal £100, reflecting a balance sheet structure typical of an early-stage construction business that has likely invested in property or development rights financed through long-term liabilities. The company employs only one individual, consistent with a micro business category (turnover ≤ £632k, balance sheet ≤ £316k, ≤ 10 employees), although its fixed assets exceed typical micro-entity thresholds, possibly due to land or property held.

In comparison to typical small to medium-sized domestic construction firms, which often report higher turnover and more balanced asset-liability structures, THE AUGHTON PROJECT LIMITED's financials indicate a focus on asset acquisition rather than revenue generation at this early stage. The minimal current assets and liabilities suggest limited operational cash flow or working capital, which is common for start-ups in this sector awaiting project commencement or sales.

3. Sector Trends Impact
   The UK domestic construction sector is currently influenced by several macro factors:

• Housing Demand: There remains strong demand for new residential buildings driven by population growth and housing shortages, which bodes well for companies in this sector.
• Material Costs and Supply Chain: Recent volatility in construction material prices and supply chain disruptions have increased project costs and timelines, which could pressure margins.
• Interest Rates: Higher borrowing costs may dampen housing market activity, potentially delaying projects or reducing buyer affordability.
• Regulatory Environment: Stricter building regulations and sustainability requirements increase compliance costs but also create opportunities for companies that can adapt quickly.
  For THE AUGHTON PROJECT LIMITED, these dynamics mean that while there is a market opportunity, operational and financial risks are elevated during early development phases.

4. Competitive Positioning
   As a very new entrant classified as a micro business, THE AUGHTON PROJECT LIMITED currently operates with minimal staff and has concentrated ownership (single director and 75-100% shareholding by Mohamed El Gadhy). This structural setup is typical for niche or startup developers who often specialize in specific projects or local markets before scaling.

Strengths:

• Significant fixed asset holding relative to company size, indicating potential access to development land or property which is a key competitive advantage.
• Lean operational structure reduces ongoing overhead costs.
• Direct control by a single experienced director may facilitate swift decision making.

Weaknesses:

• Limited operational scale and workforce restrict capacity to undertake multiple or large-scale projects simultaneously.
• Heavy reliance on long-term financing (liabilities nearly equal to fixed assets) exposes the company to refinancing and interest rate risks.
• Lack of revenue or profit data suggests the company is pre-revenue or in development phase, increasing uncertainty and risk compared to established players.

Compared to typical domestic construction firms that may be small or medium enterprises with diversified project portfolios, THE AUGHTON PROJECT LIMITED is positioned as a niche player or project-specific developer. Its success will depend largely on its ability to convert fixed assets into profitable developments amid challenging market conditions.