RJW ELECTRICAL AND PLUMBING LTD

Executive Summary

RJW Electrical and Plumbing Ltd is a micro-entity operating in the specialised trades segment of the UK construction industry, showing solid financial health with increasing net assets and strong liquidity. While benefiting from sector trends favoring technical consultancy and regulatory compliance, its small scale and workforce limit competitive reach against larger firms. The company’s focused niche positioning and prudent financial management underpin its stability and growth potential within a competitive and evolving market environment.

RJW ELECTRICAL AND PLUMBING LTD - Analysis Report

Company Number: 13270057

Analysis Date: 2025-07-20 17:27 UTC

1. Industry Classification: RJW Electrical and Plumbing Ltd operates primarily within the engineering and construction-related sector, with SIC codes 71122 (Engineering related scientific and technical consulting activities), 43220 (Plumbing, heat and air-conditioning installation), and 43210 (Electrical installation). This places the company in the specialised trades segment of the UK construction industry, which covers installation and consultancy services for electrical and plumbing systems. Key characteristics of this sector include reliance on skilled labour, project-based revenue streams, compliance with technical standards and regulations, and sensitivity to construction market cycles.

2. Relative Performance: As a micro-entity since incorporation in 2021, RJW Electrical and Plumbing Ltd’s financial profile is consistent with early-stage small trades contractors. The company’s net assets increased from approximately £2,973 in 2023 to £4,887 in 2024, indicating modest growth and retained profitability after dividend payments. Current assets more than doubled to £7,352 in 2024, supported by a strong cash position (£6,598), which enhances liquidity relative to current liabilities (£4,023). This healthy working capital ratio (net current assets of £3,329) is indicative of sound short-term financial management compared to sector averages where cash flow constraints are common among small contractors. However, the business only employs one person (the director), which is typical for micro-enterprises but limits scale relative to larger peers.

3. Sector Trends Impact: The UK electrical and plumbing installation sector is influenced by several macro trends: increasing demand for energy-efficient and sustainable building services, rising regulatory focus on safety and environmental standards, and a shift toward integrated building systems with smart technologies. Additionally, supply chain disruptions and rising material costs post-pandemic have pressured margins industry-wide. RJW’s consultancy and installation activities position it to benefit from growing demand for technical expertise in energy-saving solutions and compliance with building regulations. However, the company’s small scale may expose it to risks from supply volatility and competition from larger firms that can leverage economies of scale.

4. Competitive Positioning: RJW Electrical and Plumbing Ltd is a niche micro-enterprise player focused on electrical and plumbing installation combined with engineering consultancy services. Its strengths include a strong cash position, a focused business model, and direct control by an experienced director. The company’s exemption from audit and small company reporting regime reflects its size but may limit transparency compared to larger competitors. Its financials show resilience in building net assets and paying dividends despite being a single-person operation. However, compared to medium or large contractors, RJW lacks operational scale, broader workforce capacity, and market reach, which constrains its ability to compete for larger contracts. Its niche technical consultancy combined with installation expertise may allow it to serve specialised client needs better than generalist competitors.