Company Number: 13300510

Analysis Date: 2025-07-19 12:05 UTC

Financial Health Assessment for Angell Electrical Services Limited

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1. Financial Health Score: D

Explanation:
The company is currently showing significant financial distress indicated by persistent negative net assets and net current liabilities over the last three years. This suggests that its liabilities exceed its assets and it is reliant on external financing or shareholder support to keep operating. While it remains an active business, the financial "vital signs" point to a fragile condition requiring urgent attention.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	943	Very low asset base, typical for a micro company.
Current Assets	4,458	Cash and receivables have improved from prior year, a positive sign.
Current Liabilities	13,003	High short-term debts, increasing slightly year-on-year.
Net Current Assets	-8,545	Working capital deficit; company owes more short-term than it owns.
Total Assets Less CL	-7,602	Indicates insolvency on a going-concern basis, as liabilities exceed assets.
Net Assets (Shareholders’ Funds)	-8,218	Negative equity suggests accumulated losses or insufficient capital.
Share Capital	1	Nominal capital, typical for small private companies.

Interpretation:

• The persistent negative net current assets and net assets reveal a "symptom of distress" akin to a patient with poor vital signs such as low blood pressure or irregular pulse, indicating the company is under financial strain.
• The improvement in current assets from £626 to £4,458 is encouraging, suggesting better cash or receivables management, but this is overshadowed by high liabilities.
• The company’s fixed assets are minimal, indicating limited long-term investment or collateral.
• Negative net assets show that the company’s total obligations exceed its resources, a warning sign calling for urgent diagnostic review.

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3. Diagnosis

Angell Electrical Services Limited is currently financially distressed, exhibiting symptoms typical of a business struggling to maintain liquidity and solvency. The company's working capital deficit means that it does not have enough short-term assets to cover its short-term debts, risking payment difficulties. The negative shareholder funds highlight accumulated losses or undercapitalization.

Being a micro-entity with only one employee (the director) and a nominal share capital of £1, the company may be in an early growth or survival phase. The increase in current assets suggests some recovery or improved cash flow management. However, the overall financial "health" is weak, and without intervention, the risk of insolvency remains elevated.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial position, the following steps are advised:

• Improve Cash Flow Management:
  Increase liquidity by accelerating receivables collection, managing payables prudently, and controlling expenses. Healthy cash flow is the heart of business vitality.

• Reduce Current Liabilities:
  Negotiate longer payment terms with suppliers or consolidate short-term debts to reduce immediate pressure. Lowering current liabilities will improve working capital.

• Capital Injection or Funding:
  Consider additional equity investment from the owner or external investors to shore up net assets and provide a financial cushion.

• Cost Control and Efficiency:
  Review operating expenses carefully to eliminate unnecessary costs and improve profitability.

• Business Development:
  Focus on increasing sales and diversifying revenue streams to enhance profitability and build retained earnings (P&L reserve).

• Financial Monitoring:
  Implement regular financial reviews and forecasts to detect early warning signs and manage risks proactively.

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Executive Summary

Angell Electrical Services Limited is currently showing signs of financial distress, with negative net assets and working capital deficits indicating potential liquidity challenges. While there are early signs of improved current asset management, the company remains vulnerable and needs urgent measures to improve cash flow, reduce liabilities, and strengthen equity. Without intervention, the risk of insolvency could increase.