Company Number: 14502557

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: APPROVE with caution. HD Electrical Installations Limited is a very young micro-entity incorporated in late 2022, with its first set of accounts filed for the year ending November 2023. The company shows a positive net current asset position and net assets, indicating initial financial stability. However, the company has no employees recorded and minimal asset base (£2,726 net assets), reflecting its startup stage and limited scale. Given the small size and early stage, credit exposure should be kept modest and closely monitored.

2. Financial Strength: The balance sheet shows current assets of £8,437 against current liabilities of £5,711, leaving net current assets of £2,726. There are no long-term assets or liabilities reported. Shareholders’ funds equal net assets at £2,726, consistent with a micro-entity reporting under simplified accounting standards (FRS 105). The absence of trading history beyond one year and limited capital base suggests low financial buffer and limited ability to absorb shocks.

3. Cash Flow Assessment: The company’s liquidity appears adequate for its scale, with a positive working capital of £2,726. However, the absolute cash and current asset levels are very low, implying minimal cash runway. The lack of employees suggests minimal overheads but also possibly limited operational capacity. There is no detailed cash flow statement, but the figures imply limited immediate financial risk if credit terms remain conservative.

4. Monitoring Points:

• Growth in turnover and profit margins once trading history extends beyond the first year.
• Changes in working capital dynamics as the business scales.
• Any increase in current liabilities that might strain short-term liquidity.
• Directors’ ability to maintain sound financial controls and timely filing of accounts and confirmation statements.
• Development of a more substantial asset base or equity injection to strengthen balance sheet.