Company Number: 14121377

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: MEDIUM
   Hunt and Gregory Electrical Ltd demonstrates minimal net assets and a substantial decline in net current assets over the latest financial year, indicating constrained financial flexibility. While the company remains active and compliant with filing deadlines, the limited scale of operations and erosion of working capital pose moderate concerns for solvency and liquidity.

2. Key Concerns:

• Significant reduction in net current assets from £3,953 in 2023 to £523 in 2024, reflecting potential liquidity strain.
• Very low net assets and shareholders’ funds at £73 as of the latest accounts, suggesting minimal financial buffer against operational or market disruptions.
• The company’s micro-entity status and very small scale (average 2 employees) may limit operational resilience and capacity to absorb financial shocks.

3. Positive Indicators:

• The company is up to date with statutory filings, indicating compliance and good governance practices.
• Directors have relevant industry experience as electricians, aligned with the company’s SIC code for electrical installation, suggesting operational focus.
• The business has increased current assets year-on-year, albeit matched by rising liabilities, showing some growth in activity.

4. Due Diligence Notes:

• Investigate the nature of the increase in current liabilities and whether these include short-term debts that could pressure cash flows.
• Review detailed trading performance and cash flow statements, if available, to assess ongoing operational profitability and working capital management.
• Confirm contracts or pipeline of work to evaluate future revenue visibility and sustainability of operations given the small asset base.