Company Number: SC671229

Analysis Date: 2025-07-20 11:54 UTC

1. Credit Opinion: APPROVE
   B&I Electrical Ltd demonstrates a stable and improving financial position with consistent growth in fixed assets and shareholders' funds since incorporation in 2020. The company maintains a healthy net current asset position indicating good short-term liquidity and working capital management. There are no indications of financial distress or overdue filings, and directors appear engaged with no adverse conduct records. Given these factors, the company is capable of servicing debt obligations and managing credit responsibly.

2. Financial Strength:
   The balance sheet shows progressive growth in total assets and equity over the last four years, with shareholders’ funds increasing from £32.9k in 2020 to £145.9k in 2024. Fixed assets have risen notably to £54.4k, reflecting investment in long-term resources. Current liabilities are well covered by current assets, resulting in strong net current assets of £122.6k in 2024. The gearing is low as evidenced by moderate long-term liabilities (£29.6k), supporting a solid equity base and financial resilience.

3. Cash Flow Assessment:
   Current assets of £156.4k comfortably exceed current liabilities of £33.8k, producing a strong current ratio (~4.6x) which suggests ample liquidity to meet short-term obligations. Net working capital remains robust and stable year on year, supporting ongoing operational needs without liquidity stress. The director’s loan account shows minor advances, but balances remain manageable and no repayment issues are noted.

4. Monitoring Points:

• Track continued growth in fixed assets and net current assets to ensure sustained capital investment and liquidity.
• Monitor any significant changes in director advances or related party transactions that might impact cash flow.
• Observe any shifts in current liabilities or introduction of significant long-term debt that could affect leverage and credit risk.
• Review trading performance and cash generation in future accounts to confirm ongoing ability to service credit facilities.