Company Number: 14491727

Analysis Date: 2025-07-20 16:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DGR Electrical Services Ltd is a newly incorporated private limited company with its first set of unaudited abridged accounts filed for the period ending November 2023. The company currently shows a positive net asset position and working capital, indicating initial financial stability. However, given its very recent establishment, limited operating history, and small scale (one employee), credit approval should be conditional on continued monitoring of operational performance and timely filing of future accounts and confirmation statements.

2. Financial Strength:

• Net Assets: £2,722
• Fixed Assets: £1,318 (net of depreciation)
• Current Assets: £2,724, composed of £1,500 debtors and £1,224 cash
• Current Liabilities: £1,420
• Net Current Assets (Working Capital): £1,304

The balance sheet reflects a modest but positive equity base and working capital surplus, indicating the company is not currently over-leveraged and has sufficient short-term assets to cover liabilities. The limited tangible assets and low capital base are typical for a micro-entity in start-up phase.

3. Cash Flow Assessment:
   The company’s cash position (£1,224) and receivables (£1,500) together provide a reasonable liquidity cushion relative to current liabilities (£1,420). Although the company does not provide a profit and loss account or cash flow statement, the positive net current assets suggest the business manages its short-term obligations adequately. As a one-person business in electrical installation, cash flow is likely dependent on timely client payments and prudent expense management.

4. Monitoring Points:

• Timely submission of next financial statements and confirmation statements.
• Improvement or stability in revenue and profitability metrics once available.
• Management of debtor days and cash collection to maintain liquidity.
• Any increases in liabilities or fixed asset investments that may impact working capital.
• Overall business growth trajectory given the micro scale and start-up nature.