Company Number: 13550319

Analysis Date: 2025-07-20 13:59 UTC

1. Risk Rating: LOW
   Ashdale Electrical Solutions Ltd demonstrates solid financial health with positive net assets, strong working capital, and no overdue filings. The company is relatively young but shows growth and prudent financial management.

2. Key Concerns:

• Reliance on a single director and employee may pose operational risks if key personnel change or become unavailable.
• The presence of director and family loans, while currently manageable, warrants monitoring to ensure these do not affect liquidity or create conflicts of interest.
• Deferred tax liabilities have increased significantly year-on-year, which may impact future cash flows and profitability.

3. Positive Indicators:

• Consistent growth in net assets from £11.5k in 2021 to £34.3k in 2024, indicating retained earnings and business expansion.
• Strong liquidity position with current assets (£34.9k) comfortably exceeding current liabilities (£7.2k), yielding robust net current assets (£27.7k).
• Timely filing of accounts and confirmation statements with no overdue reports, reflecting good regulatory compliance.
• The company has maintained exemption from audit under small company rules, which is appropriate for its size and complexity.

4. Due Diligence Notes:

• Review the nature and terms of family loan arrangements, including repayment schedules and any associated risks.
• Assess the sustainability of operational capacity given the single employee/director structure and potential succession plans.
• Investigate the reason for the increase in deferred tax liabilities to understand future tax cash flow impact.
• Confirm turnover and profitability trends not disclosed here to verify ongoing operational viability beyond balance sheet strength.
• Evaluate the company’s contracts and client base stability given its industry (electrical installation) to anticipate revenue continuity.