Company Number: 12463187

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: MEDIUM
   CPD Electrical/Mechanical Contractors Ltd shows some concerning trends in liquidity and solvency despite maintaining positive net assets. The reduction in current assets and increase in long-term creditors warrants caution. However, the company remains active with no overdue filings or signs of regulatory non-compliance.

2. Key Concerns:

• Liquidity Deterioration: Current assets decreased substantially from £217k (2024) to £77k (2025), with cash dropping from £175k to £47k, raising potential short-term cash flow pressures.
• High Long-Term Creditors: Creditors due after one year remain significant at £130k, though reduced from prior year, indicating ongoing debt obligations that could strain solvency if earnings do not improve.
• Declining Net Current Assets: Net current assets fell sharply from £164k to £48k, signaling reduced working capital buffer against short-term liabilities.

3. Positive Indicators:

• Positive Net Assets: The company retains positive net assets (£31k), indicating solvency on a balance sheet basis.
• No Overdue Compliance Filings: Accounts and confirmation statements are filed timely, reflecting good regulatory compliance and governance.
• Tangible Asset Growth: Investment in plant and machinery increased, which may support operational capacity and future revenue generation.

4. Due Diligence Notes:

• Verify cash flow statements and bank reconciliations to understand liquidity management and timing of cash inflows/outflows.
• Investigate the nature and terms of long-term creditors to assess refinancing risk and repayment schedules.
• Review profit and loss accounts (not provided) to ascertain earnings trends and operational sustainability, including impact from reduced staff numbers (zero employees reported in 2025).
• Confirm whether the company depends on director or related party loans, given significant creditor balances.