TL ELECTRICAL SOLUTIONS LTD

Executive Summary

TL Electrical Solutions Ltd is a young, small-sized electrical installation firm showing early growth through asset investment and increasing receivables within a dynamic sector driven by construction and regulatory demand. Positioned as a local niche player with skilled director-owners, the company faces typical sector challenges such as labor shortages and cost pressures but benefits from steady market opportunities. Its financial position reflects cautious expansion, requiring careful management of liabilities and cash flow to sustain competitive agility against larger industry players.

TL ELECTRICAL SOLUTIONS LTD - Analysis Report

Company Number: 14006745

Analysis Date: 2025-07-29 21:10 UTC

1. Industry Classification
   TL Electrical Solutions Ltd operates in the electrical installation sector, classified under SIC code 43210. This sector encompasses companies providing electrical wiring and installation services for buildings, including residential, commercial, and industrial premises. Key characteristics include a high dependency on skilled labor (electricians), adherence to strict safety and regulatory standards, and a market influenced by construction activity, refurbishment projects, and regulatory compliance upgrades (e.g., energy efficiency and smart building technologies).

2. Relative Performance
   TL Electrical Solutions Ltd is a relatively new entrant in this sector, incorporated in March 2022, with a micro to small company profile based on its turnover and asset base. As of the financial year ending February 2024, it reported net assets of £33,624 and shareholders’ funds of the same amount, with a modest increase from £18,466 the previous year, indicating early-stage growth. The company maintains positive net current assets (£10,327), showing short-term liquidity, although current liabilities have increased notably from £18,217 to £54,306, suggesting expansion or working capital needs. Its tangible fixed assets increased significantly due to vehicle acquisitions, critical for service delivery in this sector. Compared to typical small electrical installation firms, TL Electrical Solutions’ financials suggest cautious but steady growth with investment in operational capacity.

3. Sector Trends Impact
   The UK electrical installation sector benefits from sustained demand driven by new housing developments, commercial refurbishments, and the increasing integration of renewable energy and smart technology systems. Regulatory requirements around electrical safety and energy efficiency (such as compliance with Part P building regulations and smart meter installations) generate recurring service demand. However, the sector faces challenges including skilled labor shortages, supply chain constraints for materials, and rising input costs. TL Electrical Solutions, staffed by qualified electricians who are also shareholders/directors, appears well-positioned to leverage local demand in Preston and surrounding areas, although scaling up may require navigating labor market tightness and cost inflation.

4. Competitive Positioning
   As a small, privately held company with two directors who are also electricians and major shareholders, TL Electrical Solutions is likely a niche or local player rather than a sector leader. Its strengths lie in its specialized skill set, local market knowledge, and asset investments supporting service delivery. The company’s growth in fixed assets and receivables indicates active contract acquisition and execution. However, the increase in current liabilities suggests reliance on credit or payment terms, which could pose cash flow risks if not managed carefully. Compared to larger competitors with broader geographic reach and diversified services, TL Electrical Solutions must maintain operational efficiency and client relationships to compete effectively. Its micro/small size limits economies of scale but allows agility and personalized service.