AMI ELECTRICAL SOLUTIONS LIMITED

Executive Summary

AMI Electrical Solutions Limited is a newly formed micro-entity with a positive net current asset position and low financial risk at inception. The company demonstrates initial financial stability with a single experienced director, but limited operating history calls for cautious credit exposure. Continued monitoring of cash flow and financial performance is essential to support credit decisions as the business develops.

AMI ELECTRICAL SOLUTIONS LIMITED - Analysis Report

Company Number: 14820787

Analysis Date: 2025-07-29 12:35 UTC

1. Credit Opinion: APPROVE (with cautious optimism) AMI Electrical Solutions Limited is a newly incorporated micro-entity operating in electrical installation services. The company shows a modest but positive net current asset position (£1,439) as at 30 April 2024, reflecting a basic but stable short-term liquidity. The sole director and 100% shareholder, Mr. Sisay Masresha, has relevant industry experience as an electrician, indicating management alignment with the operational sector. Given the company’s very recent establishment (under 1 year) and limited financial history, credit exposure should be moderate and facilities structured conservatively, perhaps with short-term or secured lending and periodic reviews to monitor performance and cash flow.

2. Financial Strength: The balance sheet reflects total net assets of £1,439, all represented by net current assets, as fixed assets are not reported. Current assets of £2,226 exceed current liabilities of £787, indicating positive working capital and no immediate liquidity pressures. Shareholders’ funds equal net assets, consistent with initial capital injection or retained earnings in a startup phase. The company is classified as micro, with a single employee (the director). While the financial base is small, there is no indication of leverage or distress. The absence of long-term liabilities reduces financial risk at this stage.

3. Cash Flow Assessment: Although detailed cash flow statements are not provided, the current asset composition and net current asset surplus suggest the company is maintaining sufficient short-term liquidity. The small scale of operations limits the working capital cycle complexity. However, cash balances are very modest (£2,226 total current assets), so liquidity buffers are minimal. Given the startup status, cash flow is likely sensitive to operational performance and client payment timeliness. Close monitoring of receivables, payables, and cash conversion cycle is recommended.

4. Monitoring Points:

• Revenue and profit progression in subsequent accounting periods to assess business growth and sustainability.
• Cash flow statements and liquidity ratios (current and quick ratios) to ensure ongoing ability to meet short-term obligations.
• Directors’ compliance with filing deadlines and financial reporting to maintain transparency.
• Credit utilization and repayment behavior on any granted facilities to detect early signs of stress.
• Market conditions in electrical installation sector affecting demand and pricing power.