DOUBLE POLE ELECTRICAL SOLUTIONS LIMITED

Executive Summary

DOUBLE POLE ELECTRICAL SOLUTIONS LIMITED exhibits a fragile financial position with negative net assets and significant liquidity deficits, undermining its capacity to meet short-term obligations. Given the ongoing deterioration and limited operational scale, the company is not a suitable candidate for new credit without significant improvement or external support. Close monitoring of liquidity metrics and capital structure is essential going forward.

DOUBLE POLE ELECTRICAL SOLUTIONS LIMITED - Analysis Report

Company Number: 13916202

Analysis Date: 2025-07-29 18:03 UTC

1. Credit Opinion: DECLINE
   DOUBLE POLE ELECTRICAL SOLUTIONS LIMITED presents a weak credit profile. The company’s net liabilities have increased from -£9,325 in 2023 to -£9,758 in 2024, showing further erosion of equity. Negative net current assets (-£22,308) indicate significant short-term liquidity pressure, as current liabilities (£29,213) substantially exceed current assets (£6,905). The company is a micro entity with minimal operational scale and only one employee, which heightens risk exposure. Financial trajectory is negative, with no evidence of improving profitability or cash generation. Without clear signs of capital injection or debt restructuring, the ability to service debt or meet creditor obligations is questionable, warranting a decline for new credit facilities.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Fixed assets remain static at £12,550, but are insufficient to cover even current liabilities. The company has a consistent and substantial current liability position (£29,213) that exceeds both current assets and total net assets. Shareholders’ funds are negative and worsening, reflecting accumulated losses or potentially unremitted capital calls. The company’s micro categorization and limited scale restrict financial flexibility. The absence of an audit and the micro entity filing regime limit transparency, adding to risk.

3. Cash Flow Assessment:
   Current assets largely comprise cash and receivables (£6,905), which are far below short-term liabilities, indicating poor working capital management and liquidity strain. Negative net current assets imply reliance on external funding or overdue payments to sustain operations. The lack of detailed cash flow statements limits insight, but the balance sheet signals cash flow insufficiency. With only one employee and no indicated revenue growth, operational cash inflows are likely minimal, increasing risk of payment delays or default.

4. Monitoring Points:

• Watch for any improvements in net current assets and reduction in current liabilities.
• Monitor director and shareholder capital injections or debt rescheduling efforts.
• Track filing of subsequent accounts for signs of business recovery or worsening.
• Observe payment patterns to suppliers and creditors.
• Evaluate any changes in management or operational scale that might affect financial stability.