IO ELECTRIC AUTOMATION CONSULTANCY LTD

Executive Summary

IO Electric Automation Consultancy Ltd operates with a modest but improving liquidity position and maintains good compliance with filing obligations. However, the company’s very low equity base and tight working capital present moderate solvency and liquidity risks. Concentrated single ownership and limited financial resources warrant careful operational and governance scrutiny before investment consideration.

IO ELECTRIC AUTOMATION CONSULTANCY LTD - Analysis Report

Company Number: 13105120

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and a small but growing cash position, which suggests it can meet short-term liabilities. However, the net assets and shareholders’ funds remain very low (£888 at latest year-end), indicating limited capital buffer. The small scale and limited financial resources pose moderate solvency and liquidity risks.

2. Key Concerns:

• Limited Capitalisation: Share capital at £1.00 and very modest equity (£888) provides minimal financial cushioning against unexpected losses or operational challenges.
• Thin Liquidity Margins: Although cash increased to £20,707, current liabilities have also nearly doubled to £19,819, leaving a narrow working capital cushion (£888). This tight liquidity leaves little room for delays in receivables or unexpected expenses.
• Single Director and Owner Concentration: The company is wholly controlled by one individual who is also the sole director. This concentration of control could pose governance and operational continuity risks, especially if key-person risk materializes.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Increasing Cash Position: Cash almost doubled from previous year (£9,481 to £20,707), which shows some improvement in liquidity management or business inflows.
• Ongoing Trading Status: The company is active and not in liquidation or administration, which supports operational continuity.

4. Due Diligence Notes:

• Review detailed profit and loss information (not provided here) to assess profitability, revenue trends, and expense management.
• Confirm the nature and terms of the £19,819 creditors balance to understand payment obligations and potential liquidity pressures.
• Assess the business model sustainability, considering the diverse SIC codes listed (engineering, consultancy, food services, construction activities) to clarify core operations and revenue stability.
• Investigate director background and any related party transactions given sole control by Mr. Kilickaya.
• Examine any off-balance sheet liabilities or contingent risks not apparent in the filleted accounts.
• Verify whether any intangible or fixed assets exist since none are disclosed, which could affect asset coverage in case of financial distress.