Company Number: 13558073

Analysis Date: 2025-07-19 12:52 UTC

1. Risk Rating: LOW
   Hayden Electrical Contractors Limited demonstrates a solid net asset base with positive working capital and no outstanding overdue filings. The company’s financial position has improved steadily since incorporation, indicating sound financial management and operational stability for a micro-entity.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with only 2 employees, the company’s operational capacity and resilience to market shocks could be constrained.
• Concentration of Control: Full ownership and control by a single director may pose governance risks and potential succession issues.
• Short Trading History: Founded in 2021, the company has a short financial track record, limiting the availability of long-term performance data and risk assessment.

3. Positive Indicators:

• Strong Net Current Assets Position: Current assets exceed current liabilities by £65,090 (2024), indicating good short-term liquidity.
• Increasing Net Assets and Shareholders’ Funds: Net assets grew from £886 in 2021 to nearly £100k in 2024, reflecting retained earnings and business growth.
• Timely Compliance: No overdue accounts or confirmation statement filings, demonstrating regulatory compliance and good governance discipline.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit & loss accounts to confirm profitability trends and cash generation capability.
• Examine contract pipeline and client diversification to assess revenue sustainability given the small size.
• Verify the director’s background and any potential related party transactions, considering sole control and ownership.
• Confirm if there are any contingent liabilities or off-balance-sheet exposures not reflected in the micro-entity accounts.
• Assess external factors affecting the electrical installation sector that could impact future performance.