Company Number: 13521856

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ardent Electrical & Facilities Ltd is a relatively new private limited company operating in electrical installation since 2021. The company shows a mixed financial profile with a recent deterioration in working capital and net assets that warrants caution. While the company remains active and compliant with filing deadlines, the negative net current assets and declining net assets in the latest year indicate liquidity stress. Approval can be considered provided ongoing monitoring and possibly limiting credit exposure until cash flow and balance sheet metrics improve.

2. Financial Strength:

• The company’s net assets declined from £106 in 2023 to £2,661 in 2024, though this is an improvement from prior years (2022: £5 and 2021: £10,126). The figures show volatility in equity, indicating uneven profitability or capital usage.
• Fixed assets increased significantly to £11,929 in 2024, reflecting investment in plant, machinery, and vehicles, which may improve future operational capacity.
• Current liabilities rose to £180,885 against current assets of £172,409, resulting in negative net current assets of £(8,476) for 2024, reversing a positive position of £49,422 in 2023. This indicates the company may struggle to meet short-term obligations without additional financing or cash inflows.

3. Cash Flow Assessment:

• Cash balances are very low (£1,717 in 2024 down from £2,831 in 2023), suggesting limited liquidity reserves.
• Debtors remain the largest component of current assets (£170,692 in 2024), showing significant amounts tied up in receivables. The reduction from £214,821 in 2023 may reflect better collection or reduced sales, but the high debtor level relative to cash is a concern for immediate liquidity.
• Trade creditors are significant (£83,404 in 2024), and tax and social security liabilities have increased, further pressuring cash flow.
• The company has short-term loans of £6,000 and a small long-term loan balance reduced to £792, showing some leverage but not excessive.

4. Monitoring Points:

• Watch cash flow closely, especially debtor collections and payment cycles to suppliers and tax authorities.
• Monitor working capital trends to ensure the company can cover current liabilities without resorting to additional borrowing.
• Track net asset and equity changes to detect any erosion that could signal financial distress.
• Review turnover and profitability trends in future accounts to confirm stable or improving business performance.
• Consider the impact of fixed asset investments on operational efficiency and revenue generation.