HALO ELECTRICAL LTD

Executive Summary

Halo Electrical Ltd is a micro-entity operating in electrical installation, currently showing negative net assets and working capital deficits indicating high solvency and liquidity risk. Despite some improvement in financial position over the last year and compliance with filing requirements, the company remains financially fragile with limited capital resources. Further detailed financial and operational review is recommended to assess viability and risk mitigation strategies.

HALO ELECTRICAL LTD - Analysis Report

Company Number: 12770841

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: HIGH
   The company exhibits ongoing net liabilities and negative net current assets over multiple years, indicating a distressed financial position and significant solvency risk.

2. Key Concerns:

• Persistent negative net assets: The company’s net liabilities decreased from -£16,286 in 2022 to -£6,562 in 2023 but remain negative, reflecting accumulated losses and erosion of shareholder equity.
• Negative working capital: Current liabilities (£32,902) significantly exceed current assets (£10,517) in 2023, highlighting liquidity constraints and potential difficulty meeting short-term obligations.
• Minimal share capital and small scale: With only £2 of share capital and a micro-entity classification, the company has limited financial buffer and scale to absorb losses or finance growth.

3. Positive Indicators:

• Improvement trend: The net liabilities reduced substantially from 2022 to 2023, and current assets increased, suggesting some progress in stabilizing finances.
• Steady operational footprint: The company remains active with two directors who are also PSCs, showing consistent governance and control.
• Compliance: No overdue filings or accounts; last accounts and confirmation statement filed on time.

4. Due Diligence Notes:

• Investigate the cause of persistent losses and evaluate revenue streams and cost controls.
• Review cash flow statements and debtor/creditor aging to assess liquidity management in more detail.
• Clarify any external financing arrangements or contingent liabilities not reflected on the balance sheet.
• Understand the directors’ plans to return the company to profitability or restructure.