ENER-G SERVICES LIMITED

Executive Summary

Ener-G Services Limited presents a solid credit profile with improving net assets and strong working capital, supported by prudent financial management and operational stability. The company’s ability to meet short-term liabilities comfortably and maintain equity funding reduces credit risk. Continuous monitoring of liquidity and operational metrics is advised to sustain this positive outlook.

ENER-G SERVICES LIMITED - Analysis Report

Company Number: SC682274

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: APPROVE
   Ener-G Services Limited shows strong financial stability for a micro-entity in the repair of electrical equipment sector. The company has demonstrated consistent growth in net assets and working capital over recent years, reflecting sound financial management. The absence of overdue filings and the presence of a small, manageable share capital further support a low-risk credit profile. The directors include experienced individuals with accounting and operational expertise, which enhances credit confidence. Overall, the company appears capable of meeting debt obligations and sustaining operations.

2. Financial Strength:
   The balance sheet as of 30 November 2024 reveals net assets of £906k, up from £766k the prior year, indicating asset growth and retained earnings accumulation. Fixed assets remain stable around £132k, while current assets are robust at £1.24m, primarily driven by cash or receivables. Current liabilities have decreased from £682k to £434k, improving the net current asset position significantly to £802k. Long-term liabilities are modest (£27.8k), suggesting limited debt burden. Shareholders' funds equate to net assets, confirming equity funding predominance and financial resilience.

3. Cash Flow Assessment:
   The company’s liquidity is strong with net current assets representing nearly twice the current liabilities, implying sufficient working capital to cover short-term obligations. The reduction in current liabilities alongside stable current assets signals improved cash flow management. The average number of employees has slightly declined, potentially reducing overhead costs. No audit exemption and timely accounts filing indicate transparent financial administration, reducing the risk of hidden liquidity issues.

4. Monitoring Points:

• Monitor the trend in current liabilities to ensure they remain controlled relative to current assets.
• Watch for any material changes in fixed asset valuations or impairments that could affect net asset strength.
• Track receivables turnover and cash conversion cycle to detect any cash flow tightening.
• Observe changes in ownership or director appointments, especially given shifts observed in PSC and director roles over the past three years.
• Keep an eye on employee numbers and operational expenses as an indicator of business scale and cost control.