ELECTRATEC LIMITED

Executive Summary

Electratec Limited is a newly formed micro-entity with a stable but very modest financial base and positive net assets funded entirely by equity. The company currently demonstrates sufficient short-term liquidity but lacks operational history and revenue data, warranting conditional credit approval. Continued monitoring of financial filings, cash flow, and business expansion will be essential to validate creditworthiness over time.

ELECTRATEC LIMITED - Analysis Report

Company Number: 14669447

Analysis Date: 2025-07-29 20:11 UTC

1. Credit Opinion: APPROVE (with conditions)
   Electratec Limited is a recently incorporated micro-entity operating in technical testing, electrical installation, and repair sectors. The company shows a modest but positive net asset base of £5,318 and net current assets of £368, reflecting a sound initial capitalization and working capital position. Given its very early stage of operations (incorporated in 2023, no employees reported yet) and limited financial history, credit approval should be conditional upon continued timely filing of accounts and evidence of operational revenues and cash flow generation in subsequent periods. The director’s full ownership and control indicate clear accountability but also concentration risk.

2. Financial Strength:
   The balance sheet is small but stable, with fixed assets of £4,950 and current assets of £1,501 against current liabilities of £1,133, resulting in net current assets of £368. Total net assets amount to £5,318, fully represented by shareholders’ funds, indicating the company is equity-funded with no debt reported. The absence of liabilities beyond short-term creditors reduces financial risk in the near term. However, the business scale is minimal, and reliance on owner’s capital is evident.

3. Cash Flow Assessment:
   Current assets include cash or equivalents sufficient to cover immediate liabilities, producing a positive working capital position. However, the small amount of net current assets (£368) suggests liquidity buffers are tight. Without employees and no reported profit and loss data, there is no evidence yet of operational cash inflow. Monitoring future cash generation and receivables/payables management will be critical to ensure ongoing liquidity.

4. Monitoring Points:

• Timely submission of the next full set of accounts including profit and loss to assess revenue and profitability trends.
• Changes in working capital, particularly current assets and liabilities, to ensure liquidity is maintained.
• Operational developments such as hiring staff, contract wins, and expansion of fixed assets to support business growth.
• Director’s conduct and any changes in ownership or governance that may impact credit risk.