KAS ELECTRICAL LTD

Executive Summary

KAS Electrical Ltd exhibits a strong start with positive liquidity and net assets, reflecting a financially healthy micro-business in its first year. While operational history is limited, the company's financial structure is solid, and no immediate financial distress indicators are present. Continued prudent cash management and strategic growth planning will be key to sustaining and enhancing financial wellness.

KAS ELECTRICAL LTD - Analysis Report

Company Number: 15199730

Analysis Date: 2025-07-29 20:58 UTC

Financial Health Assessment for KAS ELECTRICAL LTD
Incorporated: 10 October 2023 | Financial Year End: 31 October 2024 | Industry: Electrical Installation (SIC 43210)

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1. Financial Health Score: B

Explanation:
KAS Electrical Ltd, as a micro-entity in its first financial year, demonstrates strong financial "vital signs" with positive working capital and net assets. The business shows a healthy foundation with adequate short-term liquidity and no indications of financial distress. However, being a newly incorporated company with limited operational history and small asset base, its financial resilience is still in a formative stage, warranting a solid but cautious grade of B.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation (Analogy)
Fixed Assets	2,008	The company owns some long-term assets—small but stable "organs" supporting operations.
Current Assets	78,542	Healthy "cash and stock" reserves indicating good liquidity.
Current Liabilities	36,601	Short-term debts that must be met soon—manageable "pressures."
Net Current Assets (Working Capital)	41,941	Strong positive working capital shows "healthy blood flow" for daily operations.
Net Assets / Shareholders' Funds	43,949	Positive equity reflects "solid bone structure"—the company’s net worth.
Employees	2	Small team, likely hands-on management and direct labor.

Interpretation:

• The company’s current assets significantly exceed current liabilities, indicating it can comfortably cover short-term obligations — a symptom of good liquidity and operational stability.
• Net assets are positive, meaning the company’s total resources exceed its liabilities—this is a fundamental sign of solvency.
• The relatively low fixed asset base is typical for a service-oriented electrical installation business, relying more on skilled labor than heavy equipment.
• No overdue filings or legal concerns reported, which is a positive compliance indicator.

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3. Diagnosis:

KAS Electrical Ltd shows no "symptoms of financial distress." The balance sheet reveals a well-capitalized micro-business in its infancy, with a strong liquidity position and positive equity. The company's "vital signs" suggest operational cash flow is currently sufficient to meet liabilities, and the directors have maintained compliance with filing deadlines. The small team and asset base are consistent with a start-up focused on electrical installation services.

However, as a new enterprise, the company’s financial resilience is still developing. The absence of revenue and profit information limits deeper evaluation of profitability and cash generation. The stability depends on ongoing contract wins and effective cash management going forward.

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4. Recommendations:

To strengthen financial wellness and ensure sustainable growth, KAS Electrical Ltd should:

• Maintain Positive Working Capital: Continue monitoring cash flow closely to sustain the "healthy blood flow" essential for daily operations, especially as the business grows and takes on larger projects.
• Build Reserves Gradually: Aim to increase retained earnings and net assets by reinvesting profits, creating a financial "immune system" to absorb future shocks or downturns.
• Monitor Debtor and Creditor Days: Keep tight control over receivables and payables to avoid liquidity bottlenecks or cash flow "blockages."
• Consider Business Insurance and Contingency Planning: Protect against unforeseen risks that could affect operational and financial health.
• Plan for Growth: As the company expands, carefully assess whether investment in fixed assets (tools, vehicles) is needed to improve efficiency without over-leveraging.
• Regular Financial Reviews: Schedule periodic financial diagnostics to detect early "symptoms" of distress and act swiftly.

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