Company Number: 12503636

Analysis Date: 2025-07-20 12:21 UTC

1. Risk Rating: MEDIUM
   G A Electrical Services Hull Ltd exhibits improving solvency and liquidity positions in the latest financial year, but some factors warrant caution. The company is small with modest share capital and limited employee count, and it carries hire purchase liabilities that are material relative to equity. There are no regulatory or filing compliance issues noted.

2. Key Concerns:

• Hire purchase debt: The company has significant hire purchase obligations (£11,177 due over one year and £3,353 within one year as of 2024) which could pressure cash flows, especially if revenues fluctuate.
• Volatile working capital: The company reported negative net current assets in prior years (2022, 2023), showing past liquidity stress, although this reversed in 2024 (£12,337 positive). This volatility suggests cash flow management risks.
• Low share capital and small size: With only £100 in nominal share capital and an average employee count of one, the company is operationally limited, implying potential vulnerability to market or operational shocks.

3. Positive Indicators:

• Improved net assets and working capital in 2024: Net assets rose sharply to £17,319 from £109 in 2023; net current assets improved significantly, indicating better short-term financial health.
• Consistent compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory adherence.
• Tangible fixed assets: The company holds tangible assets (£15,810 net), providing some collateral value and operational capability.

4. Due Diligence Notes:

• Examine detailed cash flow statements to assess operational cash generation and the impact of hire purchase financing on liquidity.
• Inquire about the nature and terms of hire purchase agreements, including any covenants or risks of asset repossession.
• Review turnover and profitability trends (not disclosed here) to evaluate business sustainability and revenue stability.
• Confirm whether any contingent liabilities or off-balance sheet exposures exist.
• Investigate customer concentration and debtor quality given the fluctuations in trade debtors.