Company Number: 13734566

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: DECLINE
   IX Electrical Ltd shows a declining net asset base from £7,876 in 2022 to £2,526 in 2023, indicating erosion of financial strength. The company is a micro-entity with minimal assets and limited working capital. Current liabilities are rising (from £7,032 to £11,278), which pressures liquidity. With only one employee and a single director/shareholder controlling 75-100% of shares, the business appears small and closely held but lacks scale or financial robustness. The absence of profit/loss figures or cash flow details restricts confidence in its ability to service debt or absorb shocks. Therefore, the company does not currently demonstrate sufficient financial resilience or capacity to support additional credit without substantial conditions or guarantees.

2. Financial Strength:

• Net assets have decreased significantly by approximately 68% in one year, signaling weakening equity.
• Current assets slightly decreased from £14,908 to £13,804 while current liabilities increased by over 60%, worsening the working capital position.
• The company’s net current assets remain positive at £2,526 but are very modest, limiting buffer against short-term obligations.
• No fixed assets or other long-term investments are reported, indicating limited collateral value.
• Shareholders’ funds are low and tied to a single individual, concentrating control but also risk.

3. Cash Flow Assessment:

• The accounts do not provide explicit cash flow statements, but the declining net current assets and rising current liabilities suggest tightening liquidity.
• The small scale and single employee imply limited operational complexity, but also limited cash inflows.
• The company must be monitored closely for timely payment of creditors and ability to generate ongoing cash to meet obligations.

4. Monitoring Points:

• Track net current assets and liquidity ratios closely in future filings to detect further deterioration.
• Monitor accounts payable aging and any increases in short-term borrowing.
• Watch for any changes in director/shareholder structure or business scale that could impact credit risk.
• Review profit/loss and cash flow statements when available to assess operational performance.
• Keep an eye on filing deadlines and compliance status to avoid penalties or regulatory concerns.