Company Number: 14573863

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its very limited operating history, negative working capital, and negligible net assets. These factors suggest potential challenges in meeting short-term liabilities and sustaining operations without additional financing or revenue growth.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of £3,225, indicating a liquidity shortfall that could impair its ability to settle obligations as they fall due.
• Minimal Net Assets and Equity: With net assets and shareholders’ funds both at £32, the company has almost no financial buffer to absorb losses or unexpected expenses.
• Early Stage with Limited Financial History: Incorporated in January 2023, AF Electrical Installation Ltd has only one set of micro-entity accounts filed, limiting visibility into operational stability and financial trends.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is current with both annual accounts and confirmation statement filings, reflecting good regulatory compliance.
• Clear Ownership and Governance: Directors and persons with significant control are identified, with no recorded disqualifications or governance concerns evident from the data.
• Niche Industry Focus: Operating in electrical installation and repair of electrical equipment, sectors with ongoing demand, which may support future growth prospects.

4. Due Diligence Notes:

• Cash Flow and Funding Sources: Investigate how the company finances its current liabilities given the negative working capital and minimal equity base.
• Revenue and Profitability Trends: Obtain management accounts or trading updates to assess operational performance beyond the static balance sheet figures.
• Director Backgrounds and Related Party Transactions: While no adverse records are noted, further background checks on directors and examination of any intra-group or related party dealings would be prudent.
• Business Plan and Growth Strategy: Clarify the company’s strategy to improve liquidity and build financial resilience over time.