Company Number: 12886411

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: DECLINE
   Integrity Electrical Solutions Ltd shows significant financial deterioration over recent years, culminating in net liabilities of £11,283 as of 30 September 2024. The negative working capital position (£-11,442) and net assets indicate insolvency risk and poor ability to meet short-term obligations. The company’s cash position has decreased sharply from £21,466 in 2020 to £4,328 in 2024. There is no evidence of profitability or sustainable cash flow generation, and the company employs only one employee, pointing to limited operational scale. Given these factors, the company lacks financial resilience and the capacity to service additional credit without substantial risk.

2. Financial Strength:
   The balance sheet reveals a rapid decline from positive net assets of £13,384 in 2020 to a net deficiency of £11,283 in 2024. Current liabilities have increased relative to current assets, resulting in negative net current assets. Tangible fixed assets are minimal (£197) and declining. Shareholders’ funds have moved into substantial negative territory (£-11,363), reflecting accumulated losses. The company’s only substantial creditor balances relate to taxation and social security, which may indicate cash flow stress and potential priority liabilities. Overall, the balance sheet is weak with an erosion of equity and inadequate asset coverage.

3. Cash Flow Assessment:
   Cash balances have fallen markedly from £21,466 to £4,328 over four years, indicating cash outflows exceeding inflows and poor liquidity management. Debtors have also declined significantly, suggesting reduced sales or collection difficulties. The company reports a director’s loan balance of £1,904, which may provide some short-term funding but is insufficient to offset the liquidity shortfall. Negative net current assets and growing current liabilities point to strained working capital and potential payment delays. The absence of audit and limited disclosure on profit and loss restricts full cash flow analysis but the trends suggest cash flow weakness.

4. Monitoring Points:

• Monitor quarterly cash flow statements and liquidity position closely.
• Watch for any late or missed payments to suppliers and HMRC, especially given high taxation creditors.
• Track changes in net current assets and any further erosion of net assets.
• Review any director or shareholder loan movements for additional support or withdrawals.
• Assess operational performance and revenue trends if available to evaluate turnaround potential or further decline.
• Confirm ongoing compliance with filing deadlines to avoid penalties that may worsen financial strain.