EXCEL ELECTRICAL (SUFFOLK) LTD

Executive Summary

EXCEL ELECTRICAL (SUFFOLK) LTD has demonstrated significant financial improvement with a healthy turnaround in liquidity and increased shareholder funds, reflecting a stable and improving financial condition. The company is well-positioned to build on this foundation for future growth, provided it continues disciplined cash flow management and strategic planning.

EXCEL ELECTRICAL (SUFFOLK) LTD - Analysis Report

Company Number: 13459140

Analysis Date: 2025-07-20 17:37 UTC

Financial Health Assessment for EXCEL ELECTRICAL (SUFFOLK) LTD
Assessment Date: Financial year ending 31 July 2024

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1. Financial Health Score: B

Explanation:
EXCEL ELECTRICAL (SUFFOLK) LTD shows strong improvement in liquidity and net asset base over the last financial year. The company has moved from a negative working capital position in prior years to a positive net current assets figure, indicating healthier operational cash flow management. Although the business is still relatively young and small (micro entity), the upward trend in shareholder equity and working capital supports a solid financial footing. However, modest fixed assets and relatively small scale operations suggest there is room for growth and further financial strengthening.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	15,299	20,398	Slight decrease indicating no major capital investment or disposal of equipment; stable asset base.
Current Assets	60,764	22,823	Significant increase, showing improved cash, receivables or inventory—vital for day-to-day liquidity.
Current Liabilities	40,919	28,282	Increase in short-term obligations; manageable given rise in current assets.
Net Current Assets	19,845	(5,459)	Positive turnaround from negative working capital to positive; a key sign of improved liquidity ("healthy cash flow").
Total Assets Less Current Liabilities	35,144	14,939	Increased net assets indicating overall balance sheet strengthening.
Shareholders' Funds	35,144	14,939	Growth in equity suggests retained earnings or capital injections; stronger financial buffer.
Average Employees	4	3	Small but growing workforce, indicating modest scaling.

Additional notes:

• The company is classified as a micro-entity, benefiting from simplified reporting requirements.
• No audit required, but directors affirm responsibility for accurate financial reporting.
• Directors are experienced electrical engineers, likely contributing operational expertise.

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3. Diagnosis:

The financial "symptoms" suggest EXCEL ELECTRICAL (SUFFOLK) LTD is recovering from earlier liquidity stress ("symptoms of distress" shown by negative net current assets in 2022 and 2023). The jump to positive net current assets in 2024 signals healthier cash flow management and ability to meet short-term debts comfortably. The balance sheet shows strengthening with increased shareholders' funds, which acts as a financial "immune system," protecting against shocks.

Fixed assets have slightly decreased, which might mean the company is not heavily investing in long-term capital expenditure currently, but focusing on operational efficiency and possibly cash conservation. The rising current assets, likely cash or receivables, show good operational cash inflows.

Overall, the diagnosis is a company with improving financial wellness, moving from fragile liquidity towards a stronger, stable financial state. However, as a micro-entity, the scale is limited, and growth capacity depends on maintaining this positive momentum.

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4. Recommendations:

• Maintain and Monitor Cash Flow: Continue strong cash flow management to avoid liquidity crunches. Monitor receivables closely for timely collection.
• Plan Capital Investments: Consider strategic investments in fixed assets (equipment, technology) to support growth but balance against cash reserves.
• Strengthen Working Capital Controls: Keep current liabilities tracked and negotiate payment terms where possible to preserve liquidity.
• Explore Growth Opportunities: Given the stable foundation, look for ways to expand contracts or market reach, increasing turnover while managing costs.
• Financial Forecasting: Implement regular financial forecasting and scenario planning to anticipate potential downturns or capital needs.
• Governance and Compliance: Continue timely filing of accounts and confirmation statements to maintain regulatory compliance and good standing.
• Leverage Director Expertise: Utilize the technical expertise of directors to innovate service offerings and improve operational efficiency.

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