H.E.B ELECTRICAL LTD

Executive Summary

H.E.B Electrical Ltd is a financially stable and growing private limited company with strong liquidity and net asset growth over recent years. The company shows sound management of working capital and has no overdue filings or compliance issues, supporting credit approval. Monitoring should focus on debtor collections and creditor settlements to ensure ongoing cash flow health.

H.E.B ELECTRICAL LTD - Analysis Report

Company Number: 13802508

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: APPROVE
   H.E.B Electrical Ltd demonstrates a solid financial position with consistent growth in net assets and working capital over the last two years. The company’s positive net current assets and increasing shareholder funds indicate a stable ability to meet short-term obligations and service any additional credit facilities. The director has full control and appears to maintain clear oversight. No adverse filing or compliance issues are noted, supporting a favorable credit stance.

2. Financial Strength:
   The balance sheet shows steady improvement. Net assets increased from £54,469 in 2022 to £87,737 in 2023, reflecting retained earnings growth. Tangible fixed assets are modest but adequate for the business scale and have decreased slightly, indicating prudent asset management. Current liabilities remain manageable relative to current assets, yielding a strong net working capital position (£80,018 in 2023). Shareholders’ funds fully cover liabilities with no indication of external debt, suggesting low financial risk.

3. Cash Flow Assessment:
   Cash on hand increased from £35,561 to £59,816, indicating improved liquidity. Debtor levels have grown but remain supported by sufficient cash balances and low creditor levels. The company’s working capital position remains strong, with current assets exceeding current liabilities by a comfortable margin, providing reassurance on short-term cash flow sufficiency to cover operating expenses and debt servicing.

4. Monitoring Points:

• Debtor aging and collection efficiency given the rise in receivables.
• Taxation and social security creditor balance increased significantly; monitor timely settlement to avoid penalties.
• Impact of any economic downturn on new contract acquisition and revenue growth given the electrical installation industry exposure.
• Continued maintenance of cash reserves and working capital adequacy as the company scales.