KNIGHT ELECTRICAL SOLUTIONS LTD

Executive Summary

KNIGHT ELECTRICAL SOLUTIONS LTD is a micro-entity electrical installation business with positive net assets but showing signs of liquidity stress due to current liabilities exceeding current assets in the latest year. The company is compliant with filing requirements but has a short operating history and a sole director with full control, which concentrates governance risk. Further due diligence on cash flow and operational sustainability is advised to fully assess financial stability.

KNIGHT ELECTRICAL SOLUTIONS LTD - Analysis Report

Company Number: 13971399

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder funds, indicating solvency at the balance sheet date. However, the decline in net current assets from a positive £5,002 in 2023 to a negative £2,344 in 2024 signals emerging liquidity pressure. The company is relatively new (incorporated 2022) with limited financial history, which adds to uncertainty.

2. Key Concerns:

• Liquidity Deterioration: Current liabilities exceed current assets in 2024, indicating potential short-term cash flow challenges.
• Declining Net Assets: Net assets decreased by approximately £5,000 year-on-year, reducing the equity buffer.
• Single Director and Significant Control: The sole director and 100% controlling shareholder structure concentrates governance risk and may limit oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Positive Shareholders’ Funds: Despite declines, shareholder equity remains positive at £11,490, indicating the company is not insolvent.
• Consistent Workforce: The company maintains a small but stable employee base (three employees), consistent with its micro-entity classification.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to understand the cause of the current asset decline and whether liquidity pressures are temporary.
• Assess trade creditor terms and any reliance on short-term financing or director loans to cover working capital gaps.
• Investigate the business model viability and revenue trends given the company’s short operating history.
• Confirm absence of any director disqualifications or adverse regulatory matters given the concentrated control structure.