Company Number: 12955951

Analysis Date: 2025-07-29 16:52 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets in the most recent financial year, indicating solvency. However, the sharp decline in net assets and current assets compared to prior years, combined with a very small scale of operations, suggests some financial volatility and potential liquidity constraints.

2. Key Concerns:

• Declining Asset Base and Net Assets: Net assets have dropped from £12,644 in 2023 to £3,768 in 2024, with current assets falling significantly. This signals potential operational or cash flow issues.
• Very Small Scale and Staffing: With only 1 employee on average in 2024 and minimal fixed assets, operational resilience may be limited.
• Concentration of Control and Management: Two directors, who are also majority shareholders, may limit independent oversight or governance robustness.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements indicate good regulatory compliance.
• Positive Net Current Assets: Despite the decline, the company remains liquid with net current assets of £2,698 in 2024.
• Clear Industry Focus: Electrical installation and repair activities suggest a tangible service offering in a defined market niche.

4. Due Diligence Notes:

• Investigate reasons behind the significant reduction in current assets and net assets in the latest year; review cash flow statements if available.
• Review turnover and profitability trends to understand operational performance and sustainability.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in micro-entity accounts.
• Confirm relationships and transactions between the two directors/shareholders for potential conflicts of interest or guarantees.
• Consider market conditions in the electrical installation sector that may have impacted company performance.