H.A ELECTRICAL SERVICES LTD

Executive Summary

H.A Electrical Services Ltd is a micro-entity showing signs of financial tightening with reduced net assets and a narrow working capital margin. While regulatory compliance is current and the business appears operationally stable with a small team, concentrated control and declining equity raise caution. Further investigation into underlying financial performance and cash flow dynamics is recommended before investment.

H.A ELECTRICAL SERVICES LTD - Analysis Report

Company Number: 13885576

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM

The company exhibits some early-stage financial stress evidenced by a notable decline in net assets over the latest financial year. However, it remains active with no overdue filings and maintains positive net current assets. The limited scale and micro-entity status constrain the depth of financial data available, suggesting caution for investors.

2. Key Concerns:

• Declining Net Assets: Net assets fell sharply from £8,755 (2024) to £1,932 (2025), indicating potential erosion of equity and financial stability.
• Tight Liquidity Position: Current liabilities have increased substantially to £62,143 against current assets of £65,654, leaving a very narrow working capital buffer (£3,511), which could strain short-term cash flows.
• Key Person and Control Concentration: Mr Daniel Robert Owers holds 75-100% ownership and full voting control, which concentrates business and governance risk.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, indicating regulatory compliance.
• Consistent Workforce: Average employee count remained stable at 3 persons, suggesting operational continuity.
• Growing Current Assets: Current assets increased year-over-year, implying some growth in receivables or cash reserves despite rising liabilities.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and whether this reflects operating losses, asset writedowns, or other factors.
• Review the ageing and composition of current liabilities to assess imminent cash flow pressures.
• Understand the impact of director resignations in 2023 on management and business continuity.
• Examine trading performance and profitability metrics since profit and loss details are unavailable.
• Evaluate the risk associated with ownership and control being concentrated in a single individual.