Company Number: 13786219

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM
   The company shows positive retained earnings growth and modest net current assets, indicating ongoing operations with some financial stability. However, current liabilities are close to current assets, and a significant amount is owed to directors, which presents moderate liquidity risk.

2. Key Concerns:

• Liquidity tightness: Current liabilities (£126,612) nearly match current assets (£134,176), leaving a small net working capital buffer (£7,564). This may stress short-term cash flow.
• Director loans: £29,957 owed to directors within other creditors suggests reliance on related party financing, which may mask underlying funding gaps.
• Dividend payments: Large dividends (£256,500) paid during the year relative to equity growth may reduce cash reserves and affect reinvestment capacity.

3. Positive Indicators:

• Strong profitability: Profit for the year of £272,918 significantly increased retained earnings, supporting equity growth from £20,828 to £37,246.
• Asset base growth: Tangible fixed assets increased to £29,682, reflecting investment in operational capacity.
• No overdue filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Review cash flow statements (not provided) to assess operational cash generation versus dividend distributions.
• Investigate the nature and terms of director advances within other creditors for potential contingent liabilities or repayment risks.
• Analyze the company’s order book, contract pipeline, and client concentration in the electrical installation sector (SIC 43210) to evaluate operational sustainability.
• Confirm the absence of any director disqualifications or governance issues beyond the publicly filed data.