Company Number: 12586097

Analysis Date: 2025-07-20 18:55 UTC

1. Credit Opinion: DECLINE

BLACK OPS ELECTRIC LTD exhibits significant deterioration in financial strength over the last year, raising concerns about its ability to meet credit obligations. The net current assets have fallen sharply from £7,196 in 2023 to a marginal £239 in 2024, indicating very thin working capital. The near parity of current assets and liabilities implies limited liquidity buffers, increasing risk of cash flow shortfalls. The drastic reduction in net assets and shareholder funds from £6,046 to £239 signals erosion of equity and potential financial distress. Given the absence of an audit and minimal disclosure on profitability or cash flow generation, there is insufficient evidence to support the company’s capacity to service debt or sustain operations under economic stress. The company’s micro-entity size and single-employee operation further suggest limited operational scale and resilience.

2. Financial Strength:

The balance sheet shows marked weakening in financial position. Total net assets dropped from £6,046 to £239, reflecting either losses or withdrawals. Current liabilities have increased from £8,791 to £11,571 while current assets decreased from £15,987 to £11,810, significantly reducing liquidity. The company holds no fixed assets and has nominal share capital (£1.00), which limits collateral availability. The equity base is fragile, leaving little room to absorb shocks or fund growth. The overall financial structure is weak and deteriorating.

3. Cash Flow Assessment:

The company’s net working capital is barely positive (£239), indicating tight liquidity and limited ability to cover short-term obligations comfortably. No information is available on cash flows from operations, but the decline in working capital suggests either operational cash deficits or increased creditor reliance. The single employee and micro-entity status imply low overhead, but the current liabilities growth relative to assets signals potential payment delays or funding pressures. The lack of audit and profit & loss data limits a full cash flow analysis, but the balance sheet trend is unfavorable.

4. Monitoring Points:

• Monitor liquidity ratios closely, especially current ratio and quick ratio.
• Watch for any late payments or supplier disputes indicating cash flow stress.
• Track changes in net assets and shareholder funds for further erosion or recovery.
• Review subsequent filings for profit & loss data to assess operational performance.
• Observe director actions for capital injections or restructuring efforts.
• Assess any changes in credit terms or financing arrangements.