EX INSTALLATION & INSPECTION SERVICES LTD

Executive Summary

Ex Installation & Inspection Services Ltd is a micro-sized electrical installation company showing positive profit growth and improved liquidity in its latest financial year. While the balance sheet is modest with some leverage, the company has strengthened working capital and profitability, supporting a conditional credit approval. Ongoing monitoring of turnover, debt levels, and cash flow is recommended to mitigate the risks associated with its small scale and concentrated management.

EX INSTALLATION & INSPECTION SERVICES LTD - Analysis Report

Company Number: 12541369

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Ex Installation & Inspection Services Ltd demonstrates improving financial performance and a positive net asset position, indicating some capacity to service debt. However, the company remains micro-sized with limited turnover (£98.9k) and modest net assets (£6k). The company has a significant long-term liability (£11.2k) that exceeds current turnover levels and is largely dependent on a single director/operator. Credit approval should be conditional on maintaining or improving profitability and liquidity, and possibly supported by a personal guarantee or collateral given the small scale and relatively thin equity base.

2. Financial Strength:

• The balance sheet shows steady growth in net assets from £470 in 2020 to £6,009 in 2025, reflecting retained earnings.
• Fixed assets remain constant at £12,984, likely representing essential equipment.
• Current assets increased significantly to £14,353 in 2025 from negligible prior years, improving working capital.
• Current liabilities (£10,125) and long-term liabilities (£11,203) are notable relative to turnover, suggesting some gearing and potential refinancing risk.
• Shareholder funds are positive but modest, reflecting a thin equity cushion.

3. Cash Flow Assessment:

• Net current assets improved from a negative £5,696 in 2024 to a positive £4,228 in 2025, indicating better liquidity management.
• The company’s net profit of £44,382 in 2025 provides a good buffer for operating cash flow, supporting debt servicing.
• However, the absolute level of cash or liquid assets is not disclosed; the current assets figure includes debtors and possibly some stock, which may impact true liquidity.
• The company employs only one staff member (the director), keeping fixed costs low, which helps cash flow stability.

4. Monitoring Points:

• Watch the trend in turnover growth and net profit margins to ensure the business continues expanding.
• Monitor the level and structure of debt, particularly long-term liabilities, to avoid over-leverage.
• Review working capital closely, ensuring current assets remain sufficient to cover short-term liabilities.
• Keep an eye on director continuity and any changes in management or operational risks, given the single-person operation.
• Confirm timely filing of accounts and returns as an indicator of governance discipline.