Company Number: 13970317

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: LOW
   FERGELECTRICAL LIMITED demonstrates a solid financial position for a micro-entity, with positive net assets increasing significantly from £4,055 in 2023 to £18,642 in 2024. The company is current with filings and shows no signs of insolvency or regulatory non-compliance.

2. Key Concerns:

• Reliance on a single director/shareholder (Jake Ferguson) which concentrates control and operational risk.
• Limited scale with only one employee, potentially affecting capacity for growth and operational resilience.
• Relatively low current assets (£4,809) which could limit liquidity if unexpected expenses arise despite positive net current assets.

3. Positive Indicators:

• Improving net asset base and reduction in long-term creditors from £5,443 in 2023 to £3,622 in 2024, indicating strengthening solvency.
• No overdue filings; compliance with Companies House filing deadlines shows good governance discipline.
• Positive working capital position, with net current assets rising year on year, signaling ability to meet short-term obligations.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss accounts to assess operational cash generation and profitability trends.
• Verify the nature of long-term creditors and repayment terms to evaluate potential refinancing or liquidity risk.
• Investigate dependence on the sole director both operationally and financially, and assess plans for business continuity or expansion.