Company Number: 13254790

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GUBO ELECTRIC LTD is a micro-entity with a modest but positive net asset position of £197 as of March 2024, improving from £34 in the prior year. The company demonstrates a slight increase in net current assets, suggesting marginal improvement in working capital. However, the absolute values are very low, reflecting very limited scale and financial buffer. Given the company's young age (incorporated 2021), single director, and micro size, credit facilities should be extended with caution and limited exposure, subject to regular monitoring of cash flow and timely filing of accounts.

2. Financial Strength:
   The balance sheet reveals minimal equity and net assets, increasing from £34 to £197 over the last year, indicating some growth but still very limited capital. Current assets and liabilities are almost equal, with net current assets of only £197, indicating tight liquidity. There are no fixed assets reported, which means limited collateral value. The small share capital (£100) and minimal retained earnings highlight a fragile financial foundation, typical of a micro start-up enterprise.

3. Cash Flow Assessment:
   Current assets primarily consist of cash equivalents and receivables, but the near parity with current liabilities suggests working capital is barely positive. This implies the company’s ability to meet short-term obligations depends heavily on ongoing operational cash inflows. The reported average employee count is one, minimizing payroll outflows but also indicating limited operational scale. The tight liquidity requires careful management to avoid payment delays.

4. Monitoring Points:

• Track timely submission of annual accounts and confirmation statements to ensure compliance.
• Monitor net current assets and liquidity ratios regularly to detect any deterioration in working capital.
• Watch for any significant changes in trade creditors or receivables that could indicate cash flow stress.
• Review any increases in share capital or equity injections that would strengthen financial resilience.
• Keep an eye on contract wins or business expansion in the electrical installation and construction niche to confirm growth prospects.