ELECTRA-LOW LTD

Executive Summary

Electra-Low Ltd exhibits high financial risk due to significant negative working capital and net liabilities, indicating insolvency concerns at the last reported date. While the company demonstrates compliance and market presence, its limited operational history and poor liquidity profile warrant caution. Further investigation into liabilities and cash flow projections is essential before considering investment.

ELECTRA-LOW LTD - Analysis Report

Company Number: 14338522

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: HIGH
   The financial data indicates significant solvency and liquidity concerns, with net current liabilities exceeding £110,000 against minimal current assets. The company’s negative net assets and shareholders’ funds suggest it is deeply insolvent at the reporting date.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (£111,795) vastly exceed current assets (£1,000), indicating an inability to meet short-term obligations without immediate cash inflows or refinancing.
• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities of £111,495 highlight that total liabilities exceed total assets, pointing to insolvency risk.
• Limited Operational History and Scale: Incorporated in September 2022 with only one employee and minimal asset base, the company appears to be at an early and fragile stage of operations, which may challenge sustainability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements have been filed on time, demonstrating compliance with statutory requirements.
• Active Website and Market Presence: The company maintains an active web presence promoting efficient electric heating panels, suggesting market engagement.
• Experienced Sole Director: The director, appointed at inception, maintains continuity and control, which may support focused strategic decision-making.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether these are trade payables, loans, or other forms of debt, and the company’s plans for repayment or restructuring.
• Review subsequent management accounts or cash flow forecasts (post-March 2023) to evaluate if financial conditions have improved or deteriorated.
• Clarify the reason for the recent name change in August 2024 and whether it reflects restructuring, rebranding, or other strategic shifts.
• Assess the company’s supplier and customer relationships given the liquidity constraints, including any risk of supplier withdrawal or customer non-payment.
• Confirm whether any external funding or financial support has been secured or is being sought to stabilize the financial position.