ELECTRO VAPORS LTD

Executive Summary

ELECTRO VAPORS LTD operates as a micro-sized niche player within the diverse business support services sector, showing financial strain with negative net assets and working capital deficits atypical of stable competitors. Industry trends toward digitalisation and cost efficiency place pressure on small service firms, highlighting the need for strategic adaptation. While its workforce size signals operational capability, its current financial position suggests challenges in liquidity and sustainability relative to sector norms.

ELECTRO VAPORS LTD - Analysis Report

Company Number: 13166727

Analysis Date: 2025-07-20 15:56 UTC

1. Industry Classification
   ELECTRO VAPORS LTD is classified under SIC code 82990, "Other business support service activities not elsewhere classified." This sector is a diverse category encompassing a range of niche support services that do not fall into more common classifications such as consultancy or administrative services. Key characteristics of this sector include typically small to medium-sized enterprises offering specialised or bespoke services that support other businesses. The sector is competitive with low entry barriers but is often fragmented with many micro and small firms.

2. Relative Performance
   ELECTRO VAPORS LTD is a micro-entity, with financials reflecting a small-scale operation: fixed assets around £2,000 and current assets approximately £265,000 as of January 2024. However, the company shows net current liabilities of about £50,000 and a net deficit in net assets of £47,939, indicating a negative equity position. This contrasts with typical micro-businesses in the business support services sector, which generally maintain positive net assets and modest profitability. The company employs 15 staff, which is relatively high for a micro-entity, suggesting a labour-intensive operation or possibly an error in classification thresholds. Compared to peers, the company's financial structure appears strained, with current liabilities exceeding current assets and declining net assets over recent periods (from £56,921 net assets in 2023 to negative in 2024), which is atypical for a stable business in this sector.

3. Sector Trends Impact
   The broader business support services sector is influenced by trends such as digital transformation, increased demand for specialised outsourcing, and cost optimisation pressures from client firms. Post-pandemic, there is a growing shift towards technology-enabled support services and flexible, remote workforce models. Companies that do not adapt to these trends may face margin compression and liquidity challenges. Given ELECTRO VAPORS LTD’s micro status and reported financial strain, it may be vulnerable if not leveraging technology effectively or differentiating its service offerings. Additionally, regulatory changes and client budget tightening can exacerbate financial pressure on small service providers in this sector.

4. Competitive Positioning
   ELECTRO VAPORS LTD appears to be a niche, micro-sized player within a fragmented industry dominated by numerous small providers. Its negative net asset position and relatively high current liabilities may indicate cash flow challenges or overextension. Strengths could include a focused service niche or local market knowledge (given its Liverpool location), but these are not evident from the data alone. The presence of 15 employees suggests a commitment to service delivery capacity, which may be a competitive advantage if efficiently managed. However, compared to sector norms where positive working capital and equity are standard for sustainability, ELECTRO VAPORS LTD’s financials expose vulnerability. Without detailed profit and loss data, it is unclear if operational performance is improving or deteriorating, but the trend in net assets is negative. Its private limited structure and relatively recent incorporation (2021) suggest it is still in a growth or establishment phase, competing primarily on local or specialised service bases rather than scale or broad market leadership.