ELEC LIMITED

Executive Summary

ELEC Limited is a small player in the UK electrical installation sector demonstrating growth in assets and working capital indicative of business expansion. Positioned as a niche micro-enterprise, it benefits from focused ownership and investment in operational assets but faces typical sector challenges such as scale limitations and financial leverage. Market trends in construction activity and technological adoption present opportunities that ELEC Limited appears poised to capitalize on with prudent financial management.

ELEC LIMITED - Analysis Report

Company Number: 13794126

Analysis Date: 2025-07-29 18:48 UTC

1. Industry Classification

ELEC Limited operates within the electrical installation sector, classified under SIC code 43210. This sector encompasses businesses engaged in the installation of electrical wiring and associated electrical equipment in buildings or structures. Key characteristics of this sector include a high reliance on skilled tradespeople, project-based revenues, and exposure to construction and property development market cycles. Companies in this domain typically range from sole traders and SMEs to larger contractors servicing commercial, industrial, and residential clients.

2. Relative Performance

ELEC Limited is a small private limited company, clearly positioned at the micro-to-small end of the sector scale. Its financials for the year ending 2023 show net assets of £36,021, up from £15,784 in 2022, indicating growth but still reflecting a modest capital base. Current assets have increased substantially to £57,332, supported largely by cash balances (£51,086), while current liabilities rose to £30,317, including significant taxation and social security obligations (£22,351). The company holds tangible fixed assets of £20,427, mostly motor vehicles and plant and machinery, signifying investment in operational capacity.

Compared to typical small electrical installation firms, ELEC Limited’s asset base and working capital position are reasonable but modest. The increase in liabilities, including loans, suggests recent expansion or investment, which aligns with sector norms where cash flow management can be tight due to payment terms and project timing. The single-director structure and one-employee count reflect a typical micro-business format common in this trade.

3. Sector Trends Impact

The electrical installation sector is currently influenced by several market dynamics:

• Construction Sector Activity: Demand for electrical installation services closely tracks the health of the UK construction industry. Recent government infrastructure spending and a rebound in new housing developments support growth opportunities.

• Technological Advances: Increasing adoption of smart home technology, renewable energy systems (solar panels, EV charging points), and energy-efficient installations is driving diversification of services.

• Regulatory Environment: Compliance with evolving electrical safety standards and environmental regulations requires continual investment in skills and equipment.

• Labour Market: The sector faces skilled labour shortages, which can constrain capacity and increase labour costs.

ELEC Limited’s investment in tangible assets and increased working capital suggests it is positioning to capitalize on these trends, particularly the shift towards more technical installations.

4. Competitive Positioning

ELEC Limited is a niche micro-to-small player within the electrical installation sector. Its strengths include:

• Focused Ownership and Control: With a single director owning 75-100% of shares and control, decision-making can be swift and aligned.
• Cash Reserves: A healthy cash position relative to company size provides operational flexibility.
• Asset Investment: Ownership of vehicles and equipment supports service delivery capacity.

Challenges and weaknesses relative to sector peers include:

• Size and Scale: The company’s small scale limits its ability to compete for larger contracts or spread overheads.
• Client Concentration: Limited available data on turnover and client base suggests potential vulnerability to project pipeline fluctuations.
• Financial Leverage: The presence of bank loans and increased current liabilities may pressure liquidity if revenues do not grow as anticipated.

In comparison to typical small electrical contractors, ELEC Limited appears stable but will need to continue growing its client base and manage working capital prudently to enhance resilience and market competitiveness.