Company Number: 15585320

Analysis Date: 2025-07-29 12:03 UTC

1. Risk Rating: LOW
   The company is newly established (incorporated March 2024) and shows a modest but positive net asset position with equity of £16,922 as at the first accounting year-end. Current liabilities slightly exceed current assets by a minimal margin, but net current assets remain positive at £706, indicating sufficient short-term liquidity. No overdue filings or indications of regulatory non-compliance are present.

2. Key Concerns:

• Very limited financial history due to recent incorporation, which restricts trend analysis and assessment of operational performance sustainability.
• Current liabilities (£38,676) are relatively high compared to current assets (£39,382), leaving working capital margin very slim, which could pose liquidity risk if cash inflows slow.
• The presence of a £10,000 “other loan” classified as a current liability may pressure short-term cash flow; the terms of this loan should be clarified.

3. Positive Indicators:

• The company shows positive net assets and shareholders’ funds (£16,922) relative to the small share capital (£20), indicating early retained earnings or capital injections.
• Cash balance of £27,450 represents a strong cash position relative to total current liabilities, supporting short-term liquidity.
• Directors have filed accounts and confirmation statements on time, demonstrating good compliance and governance adherence.
• The company operates in electrical installation and repair, sectors with ongoing demand, potentially supporting stable revenue generation.

4. Due Diligence Notes:

• Review detailed terms and repayment schedule of the £10,000 loan to assess any near-term liquidity pressures.
• Monitor subsequent financial filings as the company matures to assess revenue growth, profitability, and cash flow trends.
• Evaluate management experience and strategy, particularly given the two directors’ distinct backgrounds (electrician and software engineer), to understand operational leadership and risk mitigation.
• Confirm the existence of any contingent liabilities or off-balance-sheet risks not disclosed in the initial accounts.