THE SPACES COLLECTIVE LONDON LTD

Executive Summary

THE SPACES COLLECTIVE LONDON LTD is a micro-entity operating in the UK residential property management sector, characterized by modest financial strength and a niche market presence. Its declining net asset base and net current liabilities highlight financial vulnerabilities compared to typical small-scale competitors who maintain stronger working capital. The company faces sector pressures from regulatory demands and digital disruption, which may challenge its competitive viability without scale or capital investment.

THE SPACES COLLECTIVE LONDON LTD - Analysis Report

Company Number: 13012932

Analysis Date: 2025-07-20 14:41 UTC

1. Industry Classification:
   THE SPACES COLLECTIVE LONDON LTD operates under SIC code 98000, which corresponds to "Residents property management." This sector generally involves managing residential real estate on behalf of owners, including duties such as maintenance coordination, rent collection, and tenant relations. The industry is characterised by relatively stable cash flows but can be subject to regulatory changes affecting landlord-tenant laws and property management standards. Typically, companies in this sector range from small local operators to larger firms managing extensive residential portfolios.

2. Relative Performance:
   As a micro-entity, THE SPACES COLLECTIVE LONDON LTD reports modest financials with current assets of approximately £11,871 and current liabilities of £16,629 as of November 2023, resulting in negative net current assets but positive net assets of £2,034 after accounting for accruals and deferred income. Compared to typical industry players, even small property management firms usually exhibit stronger working capital positions to cover short-term liabilities, reflecting operational cash flows from service fees or management contracts. The company’s net assets have decreased by more than 50% from £4,876 in 2022 to £2,034 in 2023, indicating either increased liabilities or reduction in retained earnings, which is a concern when benchmarked against more stable peers who maintain steady equity levels.

3. Sector Trends Impact:
   The residential property management sector in the UK has been influenced by several trends recently: rising regulatory scrutiny on property standards, increased digitalisation of management services, and a shift towards sustainability in property maintenance. Additionally, post-pandemic shifts in residential occupancy and rental markets impact management demand and fee structures. Micro-entities like THE SPACES COLLECTIVE LONDON LTD may face pressure from digital platforms offering automated property management and from larger firms consolidating market share through economies of scale. The company’s small scale and limited resources could challenge its ability to adapt swiftly to these trends or absorb regulatory compliance costs.

4. Competitive Positioning:
   THE SPACES COLLECTIVE LONDON LTD appears to be a niche or micro player within the residents property management sector, with only one employee (including directors) and minimal share capital (£2). Its liquidity position, with current liabilities exceeding current assets, suggests limited buffer to manage operational disruptions or invest in growth. While dual Swedish directors with rights to appoint/remove directors indicate consolidated control, the company’s declining net assets and small scale imply a less competitive stance relative to typical small or medium property management firms that benefit from larger client bases and more robust financials. Strengths may include agility and low overhead, but weaknesses lie in limited financial resilience and scale disadvantages.