Company Number: 14738350

Analysis Date: 2025-07-29 16:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AS Knight Electrical Limited is a newly incorporated private limited company with a short trading history since March 2023. The latest filed accounts to March 2025 show a positive net asset position and working capital, indicating an ability to meet short-term obligations. However, the level of current liabilities, particularly tax and VAT, has increased significantly, warranting monitoring. The company’s single director, Anthony Knight, holds all significant control, which simplifies governance but concentrates risk. Given the limited trading history and growing liabilities, credit approval is conditional on continued timely filings and monitoring of liquidity.

2. Financial Strength:
   The balance sheet demonstrates a modest but improving financial position. Net assets increased from £22,601 in 2024 to £32,030 in 2025, reflecting retained earnings accumulation. Fixed assets are minimal (£2,000 net book value), consistent with a services business. Current assets (£53,357) comfortably exceed current liabilities (£22,947), yielding a strong net current asset position (£30,410). The company is classified as a small entity with low capital investment and no long-term debt, reducing leverage risk.

3. Cash Flow Assessment:
   Cash holdings rose from £22,596 to £30,428, indicating improved liquidity. Trade debtors increased substantially to £22,929, including a large portion classed as “other debtors” (£20,229), which may represent related party balances or prepayments and should be clarified. Current liabilities rose mainly due to tax and VAT creditor balances (£20,943 and £380 respectively), suggesting tax payments are being deferred or accumulated. Working capital remains healthy, but the growing tax liabilities require scrutiny to ensure no cash flow strain occurs.

4. Monitoring Points:

• Monitor subsequent accounts and confirmation statement filings to ensure compliance and no deterioration in financial position.
• Review debtor composition to confirm collectability and nature of “other debtors.”
• Watch tax creditor balances closely to confirm timely settlement and avoid enforcement risks.
• Observe any changes in director or shareholder structure that might impact governance or credit risk.
• Assess future profitability and cash generation once income statement data becomes available.