ALTECH ELECTRICAL LIMITED

Executive Summary

Altech Electrical Limited is a small, privately held electrical installation company showing recent financial recovery from prior losses, reflected in a positive net asset position in 2024. Operating in a sector influenced by construction demand and green technology trends, the company occupies a niche local market position with typical small firm challenges around liquidity and scale. Continued focus on operational efficiency and market adaptation will be critical for sustainable growth.

ALTECH ELECTRICAL LIMITED - Analysis Report

Company Number: 13517760

Analysis Date: 2025-07-20 11:22 UTC

1. Industry Classification
   Altech Electrical Limited operates within the electrical installation sector, classified under SIC code 43210. This sector involves the installation, maintenance, and repair of electrical systems in residential, commercial, and industrial buildings. Key industry characteristics include reliance on skilled labour, compliance with regulatory safety standards, and responsiveness to construction and property development cycles. Electrical installation companies range from small local contractors to large firms serving major infrastructure projects.

2. Relative Performance
   Altech Electrical Limited is a micro to small-sized private limited company, given its modest turnover and asset base. Its financials show a recent shift from net liabilities in previous years (£-6,071 in 2023) to a positive net asset position (£4,679 in 2024), indicating a turnaround in financial health. However, the company still exhibits negative net current assets (£-1,520), implying some short-term liquidity pressures, although this is a marked improvement from prior years (e.g., £-12,681 in 2023). The small scale of fixed assets (£6,199) is typical for a company of this size and sector, where much of the value is in labour and contracts rather than capital-intensive assets.

In comparison to typical industry metrics, Altech’s financial scale is at the low end. Electrical installation firms often demonstrate strong cash flow when operating efficiently, but this company’s negative working capital situation until recently signals challenges often faced by startups or smaller players, such as managing receivables and payables.

3. Sector Trends Impact
   The electrical installation sector is currently influenced by several macro trends:

• Increased demand driven by new residential and commercial construction and retrofitting for energy efficiency and smart technologies.
• Regulatory emphasis on sustainable energy installations (solar panels, EV charging infrastructure) offers growth opportunities for electrical installers.
• Labour shortages in skilled trades can constrain operational capacity and margin expansion.
• Supply chain volatility affecting prices and availability of electrical components can impact cost control.

For Altech Electrical Limited, these dynamics present both opportunities and risks. The company’s relatively small size may allow agility in niche or local markets, but scaling to meet growing demand could be limited by capital and workforce constraints. Keeping pace with technological advances and regulatory changes will be essential.

4. Competitive Positioning
   Altech Electrical Limited appears to be a niche or local player rather than a market leader. Strengths include a recent improvement in net asset position and a focused management team with direct industry experience. The company’s directors have hands-on roles (director and electrician), which is common in smaller electrical firms, fostering close client relationships and operational oversight.

Weaknesses include limited financial reserves, ongoing working capital challenges, and small asset base limiting ability to take on large contracts. Compared to larger competitors with broader service offerings and stronger balance sheets, Altech may face difficulties competing on scale, pricing, and investment in new technology.

In summary, Altech Electrical Limited fits the profile of a small, privately-held electrical installation firm navigating early growth stages. The company has improved its financial footing recently but remains vulnerable to typical sector risks such as cash flow volatility and competitive pressure from larger firms. Its future success will depend on managing operational efficiency, capitalising on local market opportunities, and adapting to evolving industry demands.