Company Number: 13233394

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: MEDIUM

Justification: Impulse Electrical North West Limited shows some improvement in net assets and shareholders’ funds in the latest financial year but continues to exhibit liquidity challenges with negative net current assets and reliance on director loans and bank borrowings. The company is small, with only one employee (the director), which may affect operational stability. However, it is current with filings and not in liquidation.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by £1,896 as of 28 February 2024, indicating potential short-term liquidity risk.
• Reliance on External Debt: Significant bank loans (£9,138) and director’s loan (£1,124) contribute to current and long-term liabilities, heightening solvency risk if cash flows are insufficient.
• Small Scale and Single Employee: With only one employee (the director) and small financial scale, operational risks include potential capacity constraints and vulnerability to key person risk.

3. Positive Indicators:

• Improvement in Net Assets: The company moved from a net liability position (-£348) in the prior year to net assets of £795, suggesting some recovery.
• Compliance with Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Tangible Fixed Assets: Ownership of motor vehicles valued at £11,829 provides some asset backing.

4. Due Diligence Notes:

• Investigate Cash Flow and Working Capital Management: Understand how the company manages to meet short-term obligations despite negative net current assets.
• Review Terms and Sustainability of Bank Loans and Director’s Loan: Confirm repayment schedules, interest rates, and any covenants or guarantees.
• Assess Business Pipeline and Revenue Stability: As turnover and profitability details are not disclosed, evaluate contracts or recurring revenue sources supporting the business model.
• Confirm Director’s Capacity and Succession Plan: Given the single employee structure, assess risks related to reliance on one individual for operations.