CSTB ELECTRICAL LIMITED

Executive Summary

CSTB Electrical Limited is a newly incorporated, dormant company with minimal financial activity and a slight negative net asset position. Its financial "vital signs" indicate a fragile start typical for early-stage businesses, requiring careful cash flow management and capital support. With prudent management and activation of trading, the company has the potential to strengthen its financial health and grow sustainably.

CSTB ELECTRICAL LIMITED - Analysis Report

Company Number: 15626400

Analysis Date: 2025-07-29 19:03 UTC

Financial Health Assessment for CSTB ELECTRICAL LIMITED

---

1. Financial Health Score: Grade D

Explanation:
CSTB Electrical Limited is in the very early stages of its corporate life, having been incorporated in April 2024. The company is currently dormant, with minimal transaction activity reflected in its financial statements. The company exhibits a slight negative net asset position and shareholders’ funds deficit, which is typical for a startup entity with minimal capital and operational activity. The financial "vital signs" indicate a fragile condition, akin to a patient recently admitted with mild symptoms but no acute distress. The company is not yet generating operational cash flow or profits, marking it as a high-risk but potentially recoverable situation if managed prudently.

---

2. Key Vital Signs:

Metric	Value	Interpretation
Status	Active	Company is operational but dormant in accounting terms.
Account Category	Dormant	No significant financial transactions during the year.
Cash on hand	£156	Very low cash balance; "weak pulse" indicating limited liquidity.
Current Liabilities	£212	Small short-term obligations, slightly exceeding cash on hand.
Net Assets	-£56	Negative net assets indicate liabilities exceeding assets.
Shareholders’ Funds	-£56	Deficit in equity suggests "capital anemia" - negative retained earnings.
Share Capital	£100	Minimal equity capital invested by shareholders.
Employees	2	Small team, typical for micro or startup phase.
Industry	Electrical Installation (SIC 43210)	Sector with potential for growth but requires investment and activity.

Interpretation in Medical Terms:

• The company is in a "dormant state," showing minimal metabolic activity (transactions).
• The negative net assets and shareholders’ deficit are like mild anemia—indicating weakness but not yet critical failure.
• Cash levels are very low, akin to low blood pressure, which could lead to instability if operating expenses increase without income.

---

3. Diagnosis:

CSTB Electrical Limited is in its infancy and registered as dormant for the reporting period ending March 2025. This explains its minimal financial activity and small cash reserves. The negative net asset position and shareholders’ deficit are typical early "symptoms" for a newly formed company that has not yet commenced trading or generated revenue. The lack of audit requirement due to dormant status reflects that the company is not yet "active" in generating business.

The company is currently operating with a very small capital base (£100 share capital) and has small liabilities (£212), slightly exceeding its cash reserves (£156). This imbalance, though minor, signals the company has a delicate liquidity position and no buffer for unexpected expenses. The workforce of two people suggests a lean operation, which is appropriate for this stage.

Overall, the financial data reveals a business in the pre-operational or very early operational phase, with no immediate financial distress but also no current financial strength or trading history to rely upon. The "vital signs" suggest the company requires careful monitoring and active management to avoid deterioration once trading begins.

---

4. Recommendations:

1. Activate Trading and Revenue Generation:
   Transition from dormant status to active trading as soon as practical to begin generating cash flow and improve working capital. This will build financial "muscle" and reduce reliance on shareholder loans or external funding.

2. Monitor and Manage Cash Flow Closely:
   With only £156 in cash against £212 in current liabilities, the company has a narrow margin. Implement strict cash management controls to avoid liquidity crises once operational expenses start.

3. Consider Additional Capital Injection:
   To strengthen the equity base and improve net assets, the shareholders might consider injecting additional funds or securing small external financing to bolster liquidity and fund initial operations.

4. Maintain Compliance and Timely Filings:
   Continue timely submission of accounts and confirmation statements to avoid penalties, maintaining a "healthy compliance record" which supports credibility with stakeholders.

5. Prepare for Operational Costs:
   Budget carefully for future operational costs including staff wages, materials, and overheads, ensuring the company does not develop "symptoms of distress" such as overdue payables or inability to meet obligations.

6. Strategic Planning for Growth:
   Develop a clear business plan for market entry and growth in the electrical installation sector, focusing on building a customer base and achieving sustainable profitability.

---