Company Number: 13527737

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: MEDIUM
   Circuit Safe Limited shows improving solvency with positive net current assets and net assets as of 2024. However, the company’s relatively small asset base, reliance on director loans, and past negative working capital indicate moderate risk. The absence of audit and limited operational scale further temper confidence.

2. Key Concerns:

• Reliance on Director Loans: The company had a significant director loan balance (£16,666) fully repaid during the year, which may indicate dependence on related party funding rather than operational cash generation.
• Low Fixed Asset Base and Minimal Equity: Net assets stand at £7,969 with share capital of just £1, suggesting limited financial buffer against unexpected costs or downturns.
• Negative Working Capital History: Prior years showed negative net current assets, implying short-term liquidity challenges that only recently reversed.

3. Positive Indicators:

• Improved Liquidity and Solvency in Latest Year: Current assets increased notably to £26,700 with net current assets positive at £6,907, demonstrating better short-term financial health.
• Timely Compliance: All accounts and confirmation statements are up to date, with no overdue filings or penalties noted.
• Clear Ownership and Control: Single director and 100% ownership by Mr. Kieran Shelley reduces governance complexity and potential control disputes.

4. Due Diligence Notes:

• Examine the nature and terms of director loans historically and confirm no ongoing related party financial support is required for operations.
• Review cash flow statements (if available) to assess operational cash generation versus financing activities.
• Investigate customer base and contracts underpinning debtor balances given their materiality relative to total assets.
• Confirm the company’s revenue and profitability trends beyond balance sheet data to evaluate sustainability in the electrical installation sector.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in the abbreviated accounts.