KMS ELECTRICAL SOLUTIONS LIMITED

Executive Summary

KMS Electrical Solutions Limited presents a low-risk profile based on the available financial data, with steady asset growth, strong liquidity, and full compliance with filing requirements. The company’s small size and concentrated ownership warrant further operational and governance review, but there are no immediate solvency or liquidity concerns. Continued monitoring of financial performance and operational scalability is advised given its young age and niche market position.

KMS ELECTRICAL SOLUTIONS LIMITED - Analysis Report

Company Number: 13626226

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: LOW
   KMS Electrical Solutions Limited demonstrates solid financial metrics for a micro-entity with growing net assets and net current assets, no overdue filings, and a clean operating status, indicating a low risk of insolvency or liquidity issues at this stage.

2. Key Concerns:

• Limited scale and staffing (only 2 employees on average in 2024) could constrain operational capacity and scalability.
• Reliance on a very concentrated ownership structure (one PSC holding 75-100% shares and voting rights) may pose governance risks and potential lack of diversification in strategic oversight.
• The company is relatively young (incorporated in September 2021), so long-term operational stability and track record cannot yet be fully assessed.

3. Positive Indicators:

• Consistent growth in net assets from £26,255 in 2021 to £86,361 in 2024, showing retained earnings and financial strengthening.
• Strong liquidity position reflected by positive net current assets of £69,275 as of September 2024, indicating the company can meet short-term obligations comfortably.
• Up to date with statutory filings (accounts and confirmation statements), indicating good regulatory compliance and governance practices.
• The company operates in the electrical installation sector (SIC 43210), which typically has steady demand and aligns with a specialized niche.

4. Due Diligence Notes:

• Review cash flow statements and profit and loss accounts (not provided) to confirm underlying profitability and cash generation quality.
• Assess customer and supplier concentration risk given the small scale of operations and whether the company depends heavily on few contracts.
• Evaluate director and related party transactions, especially given the dominant control of Mr. Kurt Smith, to identify any conflicts of interest or related-party risks.
• Verify that the company maintains adequate insurance and compliance with industry regulations given its operational sector.
• Investigate any contingent liabilities or off-balance sheet obligations not visible in micro-entity filings.