JCHS ELECTRICAL LTD

Executive Summary

JCHS ELECTRICAL LTD operates in the competitive and capital-sensitive electrical installation sector as a small-scale local provider. Its financials reveal a worsening liquidity position and negative net assets, placing it below typical industry benchmarks for similar-sized firms. Given current market pressures and its limited scale, the company faces significant challenges in strengthening its competitive stance without addressing its financial vulnerabilities.

JCHS ELECTRICAL LTD - Analysis Report

Company Number: 13916524

Analysis Date: 2025-07-29 18:03 UTC

1. Industry Classification
   JCHS ELECTRICAL LTD operates primarily within the electrical installation sector, classified under SIC code 43210. This sector involves wiring buildings, installing electrical systems, and related services, typically catering to residential, commercial, and industrial clients. It is a labor-intensive industry where small and medium enterprises dominate, often competing on service quality, reliability, and local reputation. The sector is sensitive to construction activity levels, regulatory changes on electrical safety, and technological advancements such as smart home installations and energy-efficient systems.

2. Relative Performance
   As a recently incorporated private limited company (established February 2022), JCHS ELECTRICAL LTD is a micro or small enterprise by size, with just one employee (the director) reported. Its financials reveal a pattern of net current liabilities and negative net assets across the last reported three years, deepening from -£621 in 2022 to -£17,718 in 2025. Cash reserves have declined from £8,635 to £5,740, while creditors have increased significantly from £16,591 to £28,738. Compared to typical small electrical installation firms, which often maintain at least a balanced working capital position to support ongoing contract execution, JCHS’s negative net working capital indicates liquidity constraints. This financial position is below industry norms, where firms usually manage tighter cash flow controls given the project-based revenue recognition.

3. Sector Trends Impact
   The electrical installation industry in the UK has been influenced by growing demand driven by new housing developments, refurbishments, and an increasing emphasis on green technologies and energy efficiency. However, inflationary pressures on materials and labor costs, alongside supply chain disruptions, have squeezed margins, especially for smaller firms without scale negotiating power. Additionally, post-pandemic labour shortages and regulatory scrutiny on electrical safety standards have increased operational complexity. JCHS’s financial deterioration may reflect these pressures, compounded by potential challenges in securing consistent contracts or managing credit terms with suppliers and clients. The company’s negative net assets raise concerns about its ability to absorb such market shocks.

4. Competitive Positioning
   JCHS ELECTRICAL LTD appears to be a niche or follower player within the electrical installation market, likely serving local or regional clients in Stockton-On-Tees and surrounding areas. With a single director and no reported employees beyond that, it lacks scale and operational breadth compared to larger or more established competitors. Its financial liabilities outweigh assets, suggesting vulnerability in meeting short-term obligations and limited investment capacity in equipment, workforce, or business development. Strengths might include agility and low overhead, but weaknesses are pronounced in liquidity and financial resilience, which are critical in an industry reliant on timely project completion and cash flow management. Without improvements in financial health or strategic partnerships, sustaining competitive positioning will be challenging.