Company Number: 12456667

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: HIGH
   Crean Electrical Ltd exhibits significant liquidity risk and solvency concerns, primarily due to persistent negative net current assets, a sharp increase in current liabilities, and lack of receivables in the most recent year.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets deteriorated from -£1,343 in 2024 to -£17,292 in 2025, indicating an inability to cover short-term liabilities with current assets.
• Sharp Increase in Current Liabilities: Current liabilities nearly tripled from £9,461 in 2024 to £25,239 in 2025, driven mainly by an increase in "other creditors" (£20,195), which may indicate growing creditor pressure or deferred payments.
• Absence of Debtors in 2025: Debtors dropped from £8,076 in 2024 to zero in 2025, suggesting either write-offs, non-collection issues, or a halt in sales on credit, which could impact cash inflows.

3. Positive Indicators:

• Tangible Fixed Assets Growth: Net fixed assets increased substantially to £17,396 in 2025 from £1,444 in 2024, reflecting investments in plant and machinery which may support future operational capacity.
• No Overdue Filings: The company is up to date with its accounts and confirmation statement filings, indicating compliance with statutory requirements and governance standards.
• Shareholders' Funds Positive but Minimal: Equity remains positive at £104, though minimal, showing no immediate insolvency by accounting standards.

4. Due Diligence Notes:

• Investigate the nature of the significant increase in "other creditors" and the terms of these liabilities to assess creditor risk and potential payment pressures.
• Confirm reasons behind the elimination of debtors in the latest year—whether attributable to operational changes or impairment/write-offs impacting revenue recognition.
• Review cash flow statements and bank reconciliations to evaluate actual liquidity and the company’s ability to meet short-term obligations given the negative working capital.
• Assess the sustainability of the business model given one employee and limited operational scale, as well as the impact of the fixed asset purchases on future profitability.
• Consider any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.