Company Number: 14434230

Analysis Date: 2025-07-29 13:04 UTC

1. Credit Opinion: APPROVE
   Fulmer Electrical Ltd demonstrates a solid financial position for a micro-entity in its early stage, with significant growth in current assets and shareholders’ funds over the last year. The company is active, not in liquidation, and the director appears stable with full ownership and control. The absence of employees and reliance on a single director may pose operational risks but does not currently impede financial strength. Given the positive net assets and working capital, the company should be able to service credit facilities, though lending should be sized appropriately for its scale.

2. Financial Strength:

• The balance sheet shows fixed assets stable around £4.5k, appropriate for an electrical installation business likely using tools and equipment.
• Current assets increased substantially from £34.7k (2023) to £134.4k (2024), indicating improved liquidity or accumulation of receivables/cash.
• Current liabilities increased to £51.6k from £17.1k, reflecting higher short-term obligations but still comfortably covered by current assets.
• Shareholders’ funds quadrupled to £91.8k, pointing to retained earnings or capital injections improving overall net asset position.
• No long-term liabilities noted, minimizing gearing risk.

3. Cash Flow Assessment:

• Net current assets (working capital) improved markedly from £17.7k to approximately £82.8k (current assets minus current liabilities), indicating strong short-term liquidity.
• However, the accounts do not provide explicit cash flow statements — but the increase in current assets suggests healthy cash or receivables balances.
• The company presently employs no staff, which reduces fixed overhead cash outflows.
• With no audit required, detailed cash flow quality is unknown, but the asset/liability structure supports reasonable liquidity to meet short-term debts.

4. Monitoring Points:

• Watch the composition of current assets to ensure that receivables are collected timely and not becoming impaired.
• Monitor growth in current liabilities to avoid short-term liquidity squeeze, especially if credit terms with suppliers tighten.
• Track revenue and profitability trends as micro-entity filings provide limited P&L detail; sustained profitability is key for credit risk mitigation.
• Keep an eye on director involvement and operational scale since absence of employees may limit capacity and increase reliance on a single individual.
• Verify compliance with future filing deadlines to avoid regulatory penalties.