Investment Risk Analysis: CABLE AND GENERAL ELECTRICAL TESTING SERVICES LIMITED

1. Risk Rating: HIGH

The company is balance sheet insolvent with negative net assets of £7,425 as at 30 April 2026. While the position has improved from the prior period (-£17,775 as at November 2025), the company's total liabilities consistently exceed its total assets, and it carries net current liabilities of £6,271. Zero employees and minimal share capital (£2.00) compound concerns about operational viability and financial resilience.

2. Key Concerns

Balance Sheet Insolvency: The company's net assets are negative at (£7,425). Total liabilities of £31,876 exceed total assets of approximately £25,819. This means the company cannot cover its obligations from its balance sheet and is dependent on creditor forbearance or ongoing director support to continue trading.

Liquidity Pressure: Current liabilities of £31,876 dwarf current assets of £25,605 (including prepayments), resulting in net current liabilities of £6,271. The current ratio is approximately 0.80:1, indicating the company would struggle to meet short-term obligations as they fall due without external support or restructuring of debts.

Operational Minimalism: The average number of employees during the period is zero. Combined with only £2 in share capital and micro-entity status, this raises material questions about whether the company is generating any meaningful revenue or is effectively a shell holding liabilities. The nature of business (SIC 71200 - Technical testing and analysis) would typically require trained personnel, making the zero-headcount figure notable.

3. Positive Indicators

Improving Trajectory: The net liability position has narrowed significantly from (£17,775) in November 2025 to (£7,425) in April 2026 – an improvement of approximately £10,350. While the change in accounting reference date (from November to April year-end) makes direct comparison difficult, the direction is favourable.

Long-Established Entity: Incorporated in 1991, the company has operated for over 30 years. This longevity suggests some underlying viability, possibly through director support or a sustainable niche operation, even if currently scaled back.

Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings. The company maintains its regulatory obligations, which suggests active governance despite the minimal scale.

Stable Ownership: Mr David Clifford Mason holds more than 75% of shares, and the director team (David and Clare Mason) appears consistent. Owner-managed businesses of this type often benefit from director loans or informal support that may not be fully visible in the balance sheet.

4. Due Diligence Notes

Director Loans and Creditor Composition: The liabilities of £31,876 likely include director loans or related-party balances. Understanding how much is owed to the Masons versus third-party creditors is essential. If liabilities are primarily to directors who are unwilling to enforce repayment, the insolvency risk is less acute than the figures suggest.

Revenue and Profitability: Micro-entity accounts provide no profit and loss information. It is impossible to assess whether the company is generating trading income, operating at a loss, or sustaining itself through other means. Requesting management accounts or VAT returns would provide critical context.

Accounting Reference Date Change: The shift from a 30 November to 30 April year-end is unusual and warrants investigation. The most recent accounts cover only a 5-month period, which may obscure seasonal patterns or one-off adjustments that flatter the apparent improvement.

Active Trading Status: With zero employees and a micro-entity balance sheet, confirmation should be sought that the company is actively undertaking technical testing and analysis work. It is possible the company is dormant in practice, holding legacy liabilities while awaiting orderly wind-down.

Provisions and Accruals: The balance sheet includes £52 in provisions and £1,316 in accruals/deferred income. Understanding the nature of these items – particularly whether deferred income represents customer prepayments (a positive signal) or obligations – would inform the risk assessment.