B AND R GILES ELECTRICAL LIMITED

Executive Summary

B AND R GILES ELECTRICAL LIMITED, a micro-entity electrical installation business, presents a mixed financial profile with adequate short-term liquidity but declining net assets and increasing accruals that warrant closer scrutiny. The company complies with filing obligations and maintains operational stability with consistent staffing. Further investigation into profitability and cash flow dynamics is recommended to fully assess ongoing financial health and operational sustainability.

B AND R GILES ELECTRICAL LIMITED - Analysis Report

Company Number: 13588012

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

1. Risk Rating: MEDIUM
   The company shows some signs of financial stress in the latest year with a reduction in net assets and shareholders’ funds, and increasing accruals and deferred income. However, it remains solvent with positive net assets and no overdue filings.

2. Key Concerns:

• Declining Shareholders’ Funds: Shareholders’ funds decreased from £28,833 in 2023 to £18,956 in 2024, indicating a loss or withdrawal of capital which could impact solvency if the trend continues.
• Rising Current Liabilities and Accruals: Current liabilities decreased slightly but accruals and deferred income jumped to £4,391, suggesting potential cash flow timing issues or unrecognized obligations.
• Fluctuating Asset Base: Fixed assets have declined steadily from £13,217 (2021) to £6,129 (2024), possibly reflecting asset disposals or underinvestment, which could affect operational capacity.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: At £29,727 vs £13,203 in 2024, the company maintains a positive working capital position, which supports short-term liquidity.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Stable Employment: The average number of employees remains constant at 1, suggesting operational continuity without rapid downsizing.

4. Due Diligence Notes:

• Investigate the reasons for the decline in shareholders’ funds and whether the company is generating sustainable profits or incurring losses.
• Review the nature and timing of accruals and deferred income to assess potential liquidity risks or off-balance sheet commitments.
• Confirm the operational status and condition of fixed assets to understand if asset reduction impacts business capability.
• Verify cash flow statements if available to assess real liquidity beyond the balance sheet snapshot.
• Consider director background and related party transactions if accessible, given the company is single-director and micro-entity.