Company Number: 13117739

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: LOW

Justification: GT Electrical NW Ltd demonstrates solid financial health with positive net assets and net current assets across recent years. The company is current on statutory filings with no overdue accounts or confirmation statements, indicating good regulatory compliance. Its ownership structure is clear, with a single director and controlling shareholder actively managing the business.

2. Key Concerns:

• Limited scale and workforce: The company operates with only one employee, which may constrain operational capacity and business scalability.
• Concentration risk: Full ownership and control by a single individual could pose continuity risks if that person becomes unavailable or disengaged.
• Debtor increase: The significant rise in debtors from £120 to £11,658 within one year warrants review to ensure collectability and avoid liquidity strain.

3. Positive Indicators:

• Strong liquidity position: The company maintains healthy cash balances (£10,726 in 2024) relative to current liabilities (£6,528).
• Increasing net assets: Shareholders’ funds have grown from £17,629 in 2021 to £30,737 in 2024, reflecting retained earnings and business growth.
• Timely compliance: No overdue statutory filings or audit requirements, reflecting good governance and regulatory adherence.
• Tangible fixed assets growth: Investment in motor vehicles increased net fixed assets from £5,154 to £14,881, indicating capital expenditure supporting operations.

4. Due Diligence Notes:

• Assess the nature and collectability of the £11,658 debtor balance to rule out any risk of bad debts impacting cash flow.
• Review customer concentration and contract terms to ensure stable revenue streams given the small size and single director management.
• Confirm ongoing operational capacity and contingency plans considering the sole employee/director structure.
• Verify the reasonableness of credit terms with suppliers and the composition of current liabilities, particularly taxes and social security, to understand working capital management.