CME ELECTRICAL LTD

Executive Summary

CME Electrical Ltd exhibits a low risk profile with positive net current assets and compliance with filing requirements, supporting its ability to meet obligations. However, the decline in net assets and absence of fixed assets in the latest year warrant further review to ensure operational sustainability. The company's small scale and dependence on a single director highlight potential operational risks.

CME ELECTRICAL LTD - Analysis Report

Company Number: 12838468

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position as a micro-entity with positive net current assets and no overdue filings. The absence of liabilities exceeding current assets and consistent shareholder funds over recent years supports a low solvency risk.

2. Key Concerns:

• Declining Net Assets: Net assets have decreased from £27,974 in 2021 to £12,953 in 2024, indicating a reduction in retained earnings or capital which could affect long-term sustainability if the trend continues.
• Zero Fixed Assets in Latest Year: The complete write-off or disposal of fixed assets in 2024 may indicate asset depletion or lack of reinvestment in equipment, potentially impacting operational capacity.
• Single Employee Dependency: The company operates with only one employee (the director), which may present operational risks related to workforce continuity and business scalability.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Positive Working Capital: With current assets substantially exceeding current liabilities (£20,332 vs. £7,379), the company appears capable of meeting short-term obligations comfortably.
• Established Market Presence: The company maintains an active website and valid VAT registration, suggesting ongoing commercial activity and customer engagement in the electrical installation sector.

4. Due Diligence Notes:

• Investigate the reasons behind the reduction and eventual elimination of fixed assets by 2024 and assess the impact on operational efficiency and service delivery.
• Review profit and loss trends, as the micro-entity accounts do not provide a P&L, to understand profitability and cash flow dynamics.
• Assess the company's customer base and contract stability given its reliance on a single director/employee for operational continuity.
• Confirm absence of any director disqualifications or legal proceedings against the director, Craig Harvey, through external records.