Company Number: 13166653

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: HIGH
   The company exhibits a concerning solvency profile due to a very low net asset base (£514 in 2025) and significant long-term liabilities that nearly offset total assets. The reduction in shareholders' funds from £9,322 in 2024 to £514 in 2025 signals financial deterioration. Given the micro-entity status and minimal equity buffer, the company faces elevated risk in meeting longer-term obligations.

2. Key Concerns:

• Solvency and Capital Erosion: Net assets have declined sharply, dropping over 90% in one year, indicating potential insolvency risk.
• Long-Term Debt Burden: Creditors due after one year (£40,345) are almost equal to total assets, suggesting heavy leverage and limited asset coverage.
• Limited Operating Scale and Staffing: With only one employee (the director) and fixed assets unchanged, operational scalability and resilience appear constrained.

3. Positive Indicators:

• No Filing Delinquencies: Annual accounts and confirmation statements are up to date, reflecting regulatory compliance.
• Consistent Fixed Asset Base: Fixed assets have remained stable, providing some tangible asset backing.
• Full Ownership and Control: The sole director and 100% shareholder alignment may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment schedules and covenants.
• Review profit and loss trends and cash flow statements (not provided) to understand operational performance and liquidity dynamics.
• Confirm if the company has access to external funding or guarantees from the director given the low equity position.
• Assess the business model viability given limited staffing and asset base in the context of the electrical equipment repair industry.