Company Number: 14773727

Analysis Date: 2025-07-19 12:04 UTC

Credit Opinion:
CONDITIONAL APPROVAL. BJC Electrical Services Ltd is a newly incorporated private limited company (April 2023) operating in electrical installation services. The company shows a modest net asset base and positive net current assets; however, it carries a significant hire purchase debt related to fixed assets. Given its short trading history, credit exposure should be limited initially and reviewed as trading performance and financials mature. Approval is recommended with conditions including monitoring of cash flow, asset management, and debt servicing.

Financial Strength:
As of 30 April 2024, the company reports net assets of £55,918, supported by tangible and intangible fixed assets (£140,172) and net current assets of £48,253. The balance sheet shows a capital structure with minimal equity (£2 share capital) and accumulated reserves. The company’s liabilities are heavily weighted towards hire purchase contracts (£121,870 total, with £104,509 due after one year), indicating reliance on financed assets. This leverage presents some risk but is typical in asset-intensive start-ups. The relatively high fixed asset base supports operational capacity but will require effective depreciation and maintenance.

Cash Flow Assessment:
Current assets include £83,865 in cash and £39,558 in debtors, covering current liabilities of £79,470 comfortably, indicating good short-term liquidity. The positive working capital (£48,253) suggests the company can meet its immediate obligations. However, the substantial long-term hire purchase commitments will impose ongoing cash outflows. The company must maintain steady cash generation from operations to service these obligations and avoid liquidity strain. No income statement is filed, so profitability and cash flow from operations are unknown; this limits full cash flow risk assessment.

Monitoring Points:

• Debt servicing capacity, particularly hire purchase repayments and interest coverage.
• Trade debtor ageing and collections efficiency to sustain liquidity.
• Profitability trends once income statements become available to assess operational viability.
• Asset utilization and depreciation impact on financial health.
• Directors’ management of working capital and cost control.
• Any changes in credit terms with suppliers or customers that could affect cash flow.
• Timely and full filing of future accounts and confirmation statements.