RED POWER STORE LTD

Executive Summary

RED POWER STORE LTD operates as a micro-entity within a broadly defined "Other service activities" sector, typical of early-stage niche service providers. Its financial profile reflects start-up dynamics, with creditor financing exceeding net assets and no current employees, aligning with common micro-entity challenges of capital structure and operational scale. The company’s competitive position is that of a nimble new entrant, requiring careful cash flow and market responsiveness to navigate sector volatility and build sustainable operations.

RED POWER STORE LTD - Analysis Report

Company Number: 15199571

Analysis Date: 2025-07-29 21:01 UTC

1. Industry Classification
   RED POWER STORE LTD is classified under SIC code 96090, "Other service activities not elsewhere classified." This category typically includes a diverse range of small-scale service providers that do not fit neatly into other standard classifications. Businesses in this sector often operate in niche or emerging service areas, which can exhibit considerable heterogeneity in revenue models, asset structure, and operational scale. Such companies are generally micro-entities or small enterprises with limited employees and modest capital investment.

2. Relative Performance
   As a micro-entity incorporated in late 2023, RED POWER STORE LTD’s latest accounts (for the period ending 31 October 2024) show fixed assets of £15,283 and current assets of £27,783 against current liabilities of £46,202 and long-term creditors of £46,202, resulting in net negative shareholders’ funds of approximately -£3,136. This net liability position is not uncommon for a newly established micro business within this sector, reflecting initial capital investment and start-up costs financed through creditors or loans. The absence of employees and turnover data in filings suggests the company is in its early operational phase, likely focusing on setup and market entry rather than revenue generation. Compared to typical benchmarks in micro service enterprises, which often have limited fixed assets and modest working capital, RED POWER STORE LTD’s financials are consistent with a start-up undergoing investment and financing activities rather than steady operational profitability.

3. Sector Trends Impact
   The "Other service activities" classification is broad but is increasingly influenced by trends such as digitization, demand for specialized or bespoke services, and flexible business models that leverage technology and outsourcing. Market dynamics include a competitive landscape with low entry barriers but high volatility in customer acquisition. For micro-entities, cash flow management and access to credit remain critical challenges. The UK market is also impacted by regulatory changes, especially for service providers that may touch on compliance-related areas. Given the company’s early stage and small scale, it is particularly sensitive to these trends, with success dependent on rapid market adaptation and effective capital management.

4. Competitive Positioning
   RED POWER STORE LTD is a niche micro-entity with a single director and sole shareholder controlling 75-100% of shares and voting rights, indicating centralized control and decision-making agility. The lack of employees suggests a lean operational model, possibly reliant on subcontractors or digital platforms rather than traditional staffing. Compared to peers in the micro service sector, its financial position shows typical early-stage leverage with creditor financing exceeding net assets. Strengths lie in its low overhead and flexibility; however, weaknesses include limited financial resources, negative net equity, and the absence of operational scale or established revenue streams. This positions the company as a follower or new entrant rather than an established competitor or sector leader.