LDP ELECTRICAL AND SONS LTD

Executive Summary

LDP Electrical and Sons Ltd demonstrates significant solvency and liquidity concerns with persistent negative net assets and current liabilities exceeding current assets. While the company shows some improvement and complies with filing requirements, the limited financial transparency and short trading history warrant cautious evaluation. Further detailed due diligence is advised to understand the sustainability of its operations and financial recovery prospects.

LDP ELECTRICAL AND SONS LTD - Analysis Report

Company Number: 14306571

Analysis Date: 2025-07-20 16:49 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and net current liabilities over its reported periods, indicating solvency concerns. Although it is a micro-entity with limited filing requirements, the negative equity and working capital deficits raise significant risk flags regarding its financial health and creditor protection.

2. Key Concerns:

• Negative Net Assets and Equity: Net liabilities of £916 as of August 2024, though improved from £5,699 the previous year, still indicate the company has more liabilities than assets.
• Negative Net Current Assets: Current liabilities exceed current assets by £462 in 2024, suggesting potential liquidity difficulties to meet short term obligations.
• No Audit and Limited Financial Disclosure: As a micro-entity, accounts are unaudited and profit & loss details are not publicly available, limiting transparency on operational performance and cash flow.

3. Positive Indicators:

• Improving Financial Position: Compared to the prior year, the company reduced its net liabilities and net current liabilities substantially, indicating some progress in managing its balance sheet.
• Compliance with Filing Deadlines: The company’s accounts and confirmation statement filings are up to date, showing regulatory compliance and governance attention.
• Small Scale Operation: As a micro-entity with only 3 employees, the company may have a lean cost structure which could support turnaround efforts.

4. Due Diligence Notes:

• Investigate the nature of liabilities causing negative equity and whether these are trade payables, loans, or other obligations.
• Review internal cash flow statements or management accounts (if available) to assess ongoing liquidity and operational cash generation.
• Clarify business model sustainability and client base stability in the electrical installation sector, especially given the company’s short operating history since incorporation in 2022.
• Confirm if any director or related party loans or financial support exist that are not reflected in the filings.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in the micro-entity accounts.