ISMART ELECTRICS LIMITED

Executive Summary

ISMART ELECTRICS LIMITED presents a high risk profile primarily due to its negative net current assets and shareholders’ funds as of the latest accounts, indicating solvency challenges. Despite being compliant with statutory filings and having relevant management expertise, the company’s minimal operational scale and deteriorating financial position warrant detailed investigation into liquidity and ongoing viability before any investment consideration.

ISMART ELECTRICS LIMITED - Analysis Report

Company Number: 13021766

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as reflected in its negative net current assets and shareholders’ funds for the latest financial year. The deterioration from prior years indicates increasing liabilities exceeding current assets.

2. Key Concerns:

• Negative Net Current Assets: The 2023 accounts show current liabilities (£1,225) far exceeding current assets (£24), resulting in a net current liability position of -£1,201, a marked decline from previous years.
• Declining Shareholders’ Funds: Shareholders’ funds have deteriorated from £391 in 2022 to -£1,201 in 2023, indicating accumulated losses or increased liabilities.
• Lack of Employees and Minimal Operating Data: The company reports zero employees and only £1 share capital, with minimal current assets, suggesting limited operational scale and sustainability.

3. Positive Indicators:

• Compliance with Filing: The company is current with its accounts and confirmation statement filings, indicating no immediate regulatory compliance issues.
• Active Status: The company remains active and not in liquidation or administration, which implies ongoing operations.
• Experience in Sector: The director’s occupation as an electrician aligns with the company’s SIC code for electrical installation, suggesting relevant expertise at the management level.

4. Due Diligence Notes:

• Investigate causes of the sharp decline in net current assets and shareholders’ funds, including any unreported debts or off-balance-sheet liabilities.
• Review cash flow statements and bank balances (not provided) to assess liquidity risks beyond balance sheet snapshots.
• Clarify operational status given zero employees reported and minimal assets; confirm whether company is trading or dormant in practice.
• Confirm director’s background and any related party transactions that may impact financial stability.
• Examine whether there are contingent liabilities or pending creditor actions given negative working capital.