Company Number: 12450965

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: APPROVE
   CRS Electrical Limited demonstrates a solid financial position for a micro-entity, with consistent growth in net current assets and shareholders' funds over recent years. The company has maintained positive working capital and has no overdue filings, indicating good financial discipline and management stewardship. The liquidity position and asset base suggest it can service short-term obligations and sustain operations. However, as a micro company with limited operating scale and only two employees, credit limits should be conservative.

2. Financial Strength:
   The balance sheet shows a marked improvement from £27k shareholders' funds in 2024 to £136k in 2025, driven by increased current assets rising from £90k to £385k and a moderate increase in fixed assets. Current liabilities also rose but remain well covered by current assets, resulting in net current assets of £122k. The company’s equity base remains positive and growing, reflecting retained earnings or capital injection. The fixed asset base is modest but appropriate for an electrical installation business.

3. Cash Flow Assessment:
   The company holds strong net current assets (£122k) indicating sufficient liquidity to meet short-term liabilities (£263k). The increase in current assets—likely cash or receivables—supports operational cash flow. There is no indication of over-reliance on short-term debt or liquidity strain. Working capital is healthy, reducing credit risk from a cash flow perspective.

4. Monitoring Points:

• Continued monitoring of current liabilities growth relative to current assets to ensure liquidity remains strong.
• Observe the company's ability to maintain or grow operating cash flows, especially as it expands.
• Monitor any changes in ownership or director conduct since there are no PSCs currently reported.
• Keep track of compliance with filing deadlines and any changes in business scale that might affect credit risk.