SOLAR AND POWER SOLUTIONS LTD

Executive Summary

Solar And Power Solutions Ltd operates as a micro-entity within the UK's electrical installation sector, focusing on niche solar and power solutions amid a market increasingly driven by sustainability trends. While the company demonstrates stable asset investment and a focused operational footprint, its tight working capital and small scale limit competitive leverage compared to larger peers. Continued alignment with renewable energy demand offers growth potential, but financial constraints and industry headwinds pose challenges typical for micro-sized contractors.

SOLAR AND POWER SOLUTIONS LTD - Analysis Report

Company Number: 13560313

Analysis Date: 2025-07-20 15:39 UTC

1. Industry Classification
   Solar And Power Solutions Ltd operates in the "Electrical installation" sector, classified under SIC code 43210. This sector encompasses activities related to the installation of electrical wiring, fittings, and equipment in buildings and construction projects. The industry is characterized by a mix of small specialist contractors and larger firms servicing residential, commercial, and industrial clients. Key drivers include construction activity, infrastructure development, and increasing demand for electrical upgrades, including renewable energy and energy-efficient installations.

2. Relative Performance
   Solar And Power Solutions Ltd is a micro-entity, with financials reflecting a very small-scale operation typical of micro-businesses in the electrical installation sector. The company’s fixed assets increased modestly from £43.6k in 2023 to £48.6k in 2024, reflecting investment in tools or equipment. Current assets also grew slightly, but the current liabilities rose significantly from £22.9k to £39.7k, resulting in a net current asset position of only £148 in 2024, down from £15k the previous year. Shareholders’ funds declined from £58.6k to £48.7k, indicating retention of earnings is minimal or possibly small losses or distributions. The company employs about 4 people, which aligns with a micro or small contractor profile. Compared to typical industry peers, this company has limited scale and very tight working capital, which may constrain growth or operational flexibility. Larger electrical installation firms often have more robust balance sheets and higher net assets.

3. Sector Trends Impact
   The electrical installation industry in the UK is currently influenced by several trends:

• Sustainability and Renewable Energy Integration: Growing demand for solar panel installations, battery storage, and energy-efficient electrical systems boosts opportunities for companies specializing in power solutions. Solar And Power Solutions Ltd’s name suggests a focus on solar-related services, which aligns with these trends.
• Construction Sector Volatility: The industry's fortunes often correlate with construction activity, which can be cyclical. Recent supply chain disruptions and inflationary pressures have increased costs and project timelines industry-wide.
• Regulatory and Safety Standards: Increasing regulatory requirements and safety standards necessitate continual investment in staff training and equipment, which can strain smaller companies.
• Labour Shortages: Skilled trades shortages in the electrical sector put upward pressure on wages and may limit capacity for smaller contractors.

These trends offer growth pathways for niche players focusing on renewable solutions but also present operational challenges for micro entities with limited capital.

4. Competitive Positioning
   Solar And Power Solutions Ltd is a niche micro-player within the electrical installation sector, likely focused on specialized solar and power-related electrical services given its branding. Strengths include:

• Specialist focus, possibly capitalizing on the growing renewable energy market segment.
• Lean operation with a small team, allowing flexibility and potentially lower overheads.
• Steady asset base indicative of investment in necessary equipment.

Weaknesses relative to typical competitors:

• Limited working capital and very tight liquidity, which may impact ability to take on larger contracts or withstand payment delays.
• Small scale limits bargaining power with suppliers and ability to diversify client base.
• No audit requirement suggests limited external financial scrutiny, which may be a concern for larger clients or financiers.

Compared to larger electrical installation firms, this company likely competes on niche expertise and local reputation rather than scale or breadth of services.