DOUBLE O ELECTRICAL LTD

Executive Summary

DOUBLE O ELECTRICAL LTD is a small but growing electrical installation firm investing in fixed assets to support expanding operations in a competitive UK sector. While the company shows positive net assets and asset growth, it carries significant finance lease liabilities and has relatively low cash reserves, highlighting liquidity risks typical in the industry. Positioned as a niche player, its success will hinge on managing cash flow and leveraging industry trends such as energy efficiency and renewable installations.

DOUBLE O ELECTRICAL LTD - Analysis Report

Company Number: 13129181

Analysis Date: 2025-07-20 11:55 UTC

1. Industry Classification
   DOUBLE O ELECTRICAL LTD operates within the Electrical Installation sector, classified under SIC code 43210. This sector comprises companies primarily engaged in the installation of electrical wiring and equipment in buildings, encompassing residential, commercial, and industrial projects. The industry is characterized by a mix of small to medium-sized enterprises, often locally focused, with competition based on technical expertise, reliability, and compliance with regulatory standards such as wiring safety and building codes. Capital intensity is moderate, involving investment in tools, vehicles, and skilled labour.

2. Relative Performance
   Financially, DOUBLE O ELECTRICAL LTD is a micro to lower small-sized enterprise, with net assets of £15,247 and shareholders’ funds reflecting modest retained earnings. Its balance sheet shows growth: net assets nearly doubled from £13,290 in 2023 to £15,247 in 2024, supported by increased fixed assets (notably motor vehicles and plant & machinery) and a more than doubling of current assets to £95,060. However, the company carries significant liabilities, including £49,627 in long-term obligations under finance leases and hire purchase contracts, which is relatively high for a company of this size. Cash holdings remain low (£8,334), and trade debtor levels are elevated (£28,363), indicating exposure to credit risk or longer payment terms. The company maintains a small workforce (average 2 employees), consistent with sector norms for small electrical installation firms.

Compared to typical industry metrics, which often see small electrical contractors with tighter current liability management and stronger cash positions, DOUBLE O ELECTRICAL LTD’s leverage and creditor balances might be higher than average. However, its asset growth and positive net asset position indicate operational expansion and reinvestment.

3. Sector Trends Impact
   The electrical installation industry in the UK is influenced by several trends:

• Increasing demand for energy-efficient and smart electrical systems driven by sustainability goals and building regulations (e.g., Part L of Building Regulations).
• Growth in renewable energy installations (solar panels, EV charging infrastructure) creating new service opportunities.
• Supply chain pressures affecting availability and pricing of materials and equipment, impacting cost structures.
• Labour shortages and skills gaps affecting project delivery timelines and wage costs.
• Economic fluctuations influencing construction activity levels, which directly affect demand for electrical installation services.

DOUBLE O ELECTRICAL LTD’s recent investment in vehicles and machinery suggests positioning to serve these evolving market demands, possibly targeting higher-value or more complex contracts. The company’s ability to manage cash flow and finance liabilities will be vital amid sector volatility caused by inflation and supply constraints.

4. Competitive Positioning
   Strengths:

• Demonstrated asset growth indicating investment in operational capacity.
• Positive net asset base despite being a young company (incorporated 2021).
• Small team size allowing agility and potentially tighter client relationships.
• Directors with relevant experience, including one identified as an electrician, supporting technical competence.

Weaknesses:

• High finance lease obligations relative to size could constrain financial flexibility.
• Elevated trade receivables and low cash reserves may pose liquidity risks, common challenges in the sector due to payment delays.
• Limited scale compared to regional or national competitors, which can impact bargaining power with suppliers and ability to bid for larger contracts.
• No disclosed profit and loss details limit visibility on profitability and operational efficiency.

Overall, DOUBLE O ELECTRICAL LTD appears as a niche player within the electrical installation industry, focused on steady growth and capital investment. While it faces typical sector challenges such as cash flow management and competitive pressure, its asset base and management team position it to capitalize on market trends if it can maintain operational discipline.