GO SMART ELECTRICAL LTD

Executive Summary

GO SMART ELECTRICAL LTD currently faces high financial risk characterized by negative net assets and ongoing liquidity challenges despite slight improvement in working capital. While regulatory compliance is maintained, the company’s financial position indicates potential solvency concerns. Further due diligence on creditor terms and operational cash flow is recommended to fully assess sustainability.

GO SMART ELECTRICAL LTD - Analysis Report

Company Number: 13888934

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

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with negative net assets worsening from -£20,684 in 2023 to -£37,821 in 2024. Additionally, the presence of £50,000 creditor debt due after more than one year and persistent net current liabilities indicate liquidity challenges.

2. Key Concerns:

• Negative Equity and Net Assets: The company’s shareholders' funds have deteriorated substantially into negative territory, suggesting accumulated losses and potential insolvency risk.
• Liquidity Deficit: Current liabilities exceed current assets by £699 in 2024, though improved from prior years, and long-term creditors of £50,000 increase financial pressure. This indicates ongoing cash flow constraints.
• Small Scale and Limited Financial Transparency: As a micro-entity with minimal filing requirements and unaudited accounts, limited financial detail restricts comprehensive analysis and may mask underlying operational or financial weaknesses.

3. Positive Indicators:

• Active Status and No Overdue Filings: The company is active and compliant with filing deadlines, indicating basic regulatory adherence and governance.
• Slight Improvement in Net Current Assets: The net current liabilities have reduced significantly from -£37,651 in 2023 to -£699 in 2024, signaling some improvement in short-term financial management.
• Stable Director and Ownership Structure: Majority control by a single shareholder with a professional director suggests clear leadership and decision-making authority.

4. Due Diligence Notes:

• Investigate the nature, terms, and repayment schedule of the £50,000 creditor debt falling due after more than one year to assess refinancing or default risk.
• Review management accounts and cash flow forecasts to understand operational cash generation and ability to meet liabilities as they fall due.
• Examine reasons for accumulated losses and negative equity, including profitability trends, cost structure, and business model viability.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in micro-entity filings.
• Clarify the role and influence of the resigned director to understand any potential impact on company operations or governance.