HURST CONSTRUCTION AND ELECTRICAL LTD

Executive Summary

Hurst Construction and Electrical Ltd is a small, niche player in the UK electrical installation and domestic construction sectors, exhibiting typical SME financial characteristics with modest asset holdings and recent liquidity tightening. The company operates in a competitive environment affected by cost inflation and evolving technical demands, which challenge smaller firms to maintain financial stability and market relevance. Strengthening working capital and leveraging specialized services may be critical for sustaining growth amid sector headwinds.

HURST CONSTRUCTION AND ELECTRICAL LTD - Analysis Report

Company Number: 13485017

Analysis Date: 2025-07-20 18:37 UTC

1. Industry Classification
   Hurst Construction and Electrical Ltd operates primarily within SIC code 43210 (Electrical Installation) and 41202 (Construction of Domestic Buildings). These sectors fall under the broader construction industry, with a specific focus on electrical contracting and residential building construction. Key characteristics of this sector include project-based work, reliance on skilled labor, regulatory compliance with building codes and electrical safety standards, and a strong connection to housing market trends and infrastructure development. The market is competitive, comprising numerous small and medium-sized enterprises (SMEs) alongside a few large players.

2. Relative Performance
   As a private limited company established in 2021 and classified as a small entity by turnover and staff size, Hurst Construction and Electrical Ltd’s financials reflect typical early-stage SME patterns in these sectors. The company reported net assets of £2,475 as of March 2024, down from £11,094 in the prior year, and a net current liabilities position of £875, indicating some short-term liquidity pressures. These figures are modest compared to industry averages where established electrical installation and domestic construction firms typically hold stronger net asset bases and positive working capital. The company’s tangible fixed assets (~£4,136) suggest investment in plant and machinery appropriate for a small-scale operator. The reduction in debtors and cash reserves over the year, alongside relatively steady current liabilities, may indicate a contraction in business activity or tighter operating margins.

3. Sector Trends Impact
   The UK construction sector, including electrical installation and residential building, has faced mixed dynamics in recent years. While demand for domestic construction remains robust due to housing shortages and government initiatives, challenges such as rising material and labor costs, supply chain disruptions, and inflationary pressures have squeezed margins. Additionally, the electrical installation sub-sector is influenced by increasing demand for energy-efficient and smart home technologies, which can drive growth opportunities but require ongoing investment in skills and technology. For a small firm like Hurst Construction and Electrical Ltd, navigating these trends necessitates careful cash flow management and differentiation through quality or niche services to withstand competitive pressures.

4. Competitive Positioning
   Hurst Construction and Electrical Ltd appears to be a niche SME player within its sectors, likely focusing on localized or specific residential projects. Its small workforce (average of 2 employees) and modest asset base limit its capacity to scale rapidly or compete on large contracts against established regional or national contractors. However, its private ownership and direct involvement of directors with industry experience (an electrician and an administrator) may provide agility and client responsiveness advantages. The decline in net assets and working capital in the latest year raises concerns over financial resilience, a common risk for SMEs in construction subject to project payment cycles. Competitors with stronger balance sheets, diversified service offerings, or access to larger capital pools might outperform in securing contracts and managing economic fluctuations.