Company Number: 13644685

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: APPROVE
   AX Electrical Services Ltd demonstrates strong financial improvements over three years, with consistent growth in net assets and working capital. The company’s micro size and single director structure imply limited operational scale but also manageable risk. There are no overdue filings or legal concerns. The company appears capable of servicing modest credit facilities based on current liquidity and equity levels.

2. Financial Strength:
   The balance sheet shows a robust increase in net assets from £5,676 in 2022 to £76,359 in 2024, driven by growth in current assets (notably cash/debtors) and controlled liabilities. Fixed assets are minimal, reflecting a service-based electrical installation business. The shareholder funds have increased substantially, indicating retained earnings or capital injections. The company maintains a strong equity base and low gearing risk.

3. Cash Flow Assessment:
   Net current assets improved from £4,614 in 2022 to £72,018 in 2024, indicating excellent liquidity and working capital management. Current liabilities are minimal relative to current assets, supporting timely debt servicing. The increase in cash/debtors suggests good cash inflows from operations or client payments. The company’s ability to cover short-term obligations comfortably is evident.

4. Monitoring Points:

• Continue monitoring cash conversion cycles and debtor aging to ensure liquidity remains strong.
• Watch for any significant changes in current liabilities or accruals that could impact short-term liquidity.
• Track profitability trends as more detailed profit and loss data becomes available to confirm sustainability of growth.
• Review director’s management decisions and any changes in ownership or control that might affect governance or credit risk.