Company Number: 13619911

Analysis Date: 2025-07-20 19:13 UTC

1. Credit Opinion: APPROVE – ENERGY RIGHT LIMITED demonstrates a stable and modest financial position, typical for a micro-entity operating in plumbing and HVAC installation. The company shows positive net current assets and net asset growth over the last two years, indicating an ability to meet short-term obligations. No signs of financial distress or overdue filings are noted. However, the scale of operations is very small with minimal fixed assets and a single employee, which tempers risk tolerance and suggests limited operational scale.

2. Financial Strength: The balance sheet shows net assets improving from £5,087 in 2023 to £6,503 in 2024, reflecting retained earnings or capital injections. Current assets remain low but sufficient relative to current liabilities (which have decreased significantly from £7,000 in 2023 to £485 in 2024), providing a healthy working capital position. There are no fixed assets reported, which may indicate limited investment in equipment or property, typical for service trades relying on contractor tools or leased equipment.

3. Cash Flow Assessment: The company maintains positive net current assets (£6,503 in 2024), suggesting adequate liquidity to cover short-term debts. The sharp reduction in creditors within one year signals improved cash management or reduced supplier credit reliance. However, the absolute cash and receivables balances are very modest (£6,988 current assets), so cash flow resilience is limited if business volumes fluctuate. Monitoring cash conversion cycles and debtor collections will be important.

4. Monitoring Points:

• Monitor any changes in current liabilities to ensure the company does not accumulate short-term debt beyond its modest current assets.
• Track profitability and cash flow in future accounts to verify continued growth and liquidity.
• Review any potential capital expenditures or changes in asset base that might affect financial flexibility.
• Keep an eye on director and operational changes given the very small scale and single employee status.