WALTHAM GAS & ELECTRICS LTD

Executive Summary

Waltham Gas & Electrics Ltd is a micro-sized private company operating in the UK plumbing and electrical installation sector, exhibiting typical early-stage SME financial characteristics such as negative working capital and modest asset base. While its integrated service offering positions it well amid evolving energy efficiency and regulatory trends, the company faces liquidity and scale challenges common in this competitive, fragmented industry. Strategic focus on cash flow management and capability development will be critical for its growth and competitive positioning.

WALTHAM GAS & ELECTRICS LTD - Analysis Report

Company Number: 13316239

Analysis Date: 2025-07-20 18:55 UTC

1. Industry Classification

Waltham Gas & Electrics Ltd operates primarily within the SIC codes 43220 (Plumbing, heat and air-conditioning installation) and 43210 (Electrical installation). This places the company firmly in the building services sector, specifically in the installation and maintenance of plumbing and electrical systems. Key characteristics of this sector include a reliance on skilled tradespeople, relatively low fixed assets compared to manufacturing, and significant competition among small and medium-sized enterprises (SMEs). This sector is labour-intensive, often project-based, and subject to regulatory standards around health and safety, building codes, and increasingly energy efficiency.

2. Relative Performance

As a private limited company incorporated in 2021, Waltham Gas & Electrics Ltd is a micro to small-sized enterprise by UK definitions, with modest financial figures. The latest financials to March 2024 show:

• Net current liabilities of £6,784, improving from £9,398 the previous year but indicating working capital constraints.
• Shareholders’ funds increased from £202 in 2023 to £2,656 in 2024, reflecting incremental equity or retained earnings growth.
• Tangible fixed assets of £9,440, which is typical for a small trades-focused enterprise needing equipment but not heavy plant.
• Average staff count of 3 employees, consistent with a microbusiness profile.
• Operating without audit requirements under the small companies regime, which is standard for businesses under certain size thresholds.

Compared to typical industry metrics, which can vary widely, this company’s financial position shows early-stage development with limited scale and some liquidity pressure as evidenced by net current liabilities. Many small installers operate similarly with tight cash flows, relying heavily on timely project payments. The gradual improvement in net assets is a positive sign but the company remains at a nascent stage compared to established medium-sized competitors.

3. Sector Trends Impact

The plumbing and electrical installation sectors have been influenced by several key trends:

• Increasing demand for energy-efficient and low-carbon heating solutions (e.g., heat pumps), which may offer growth opportunities but also require upskilling.
• Regulatory tightening around electrical safety and building standards, driving demand for certified installers but also increasing compliance costs.
• Supply chain pressures and rising materials costs post-pandemic have squeezed margins industry-wide.
• Growing competition from both small local tradesmen and larger multi-service contractors.
• Digitalization and adoption of new technologies (e.g., smart home electrical systems).

For Waltham Gas & Electrics Ltd, these dynamics suggest both challenges and opportunities. The company’s small size may allow agility in adopting new services, but resource constraints could limit its ability to scale or invest in training and equipment needed to capitalize fully on emerging opportunities.

4. Competitive Positioning

Strengths:

• The company’s dual focus on plumbing, heating, and electrical installation positions it to offer integrated services, appealing to clients seeking one-stop solutions.
• Small size and local presence (based in London) could enable strong customer relationships and responsiveness.
• Modest asset base and small workforce imply relatively low fixed overheads, which can be advantageous in price-competitive markets.

Weaknesses:

• The financials reveal negative net working capital, a common but risky position that could impede the ability to handle larger projects or delayed payments.
• Limited scale and capital resources compared to medium and large competitors restrict market reach and investment capacity.
• Lack of audit and abridged accounts filings may limit transparency and trust with larger clients or financial institutions.
• Being a relatively new entrant (incorporated 2021) means less established market reputation versus longstanding competitors.

In summary, Waltham Gas & Electrics Ltd is a micro-sized player within the competitive and fragmented building services sector. Its financials and scale reflect typical early-stage SME challenges of cash flow management and growth capital. The company’s dual-service offering is strategically sound in a market trending toward integrated, energy-efficient installations. However, its ability to scale and compete with larger firms depends on improving liquidity, building a customer base, and possibly investing in technical capabilities aligned with evolving sector demands.