Company Number: 15138956

Analysis Date: 2025-07-20 13:19 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position (£27,004) with net current assets of £18,477 and no overdue filings. There are no indications of insolvency or liquidity distress at this early stage of trading, though it is a very recently incorporated entity.

2. Key Concerns:

• Limited operating history: Incorporated September 2023, the company has just over one year of trading history, making financial stability assessment inherently limited.
• Modest cash balance: Cash at bank is £2,657, which may constrain short-term liquidity for operational needs, especially given current liabilities of £21,978 due within one year.
• Reliance on director and single shareholder: Control and ownership concentrated with one individual who is also the sole director, potentially raising governance risks and lack of diversification in management.

3. Positive Indicators:

• Positive net assets and working capital: Net current assets of £18,477 and shareholders’ funds of £27,004 indicate initial financial soundness.
• Up-to-date statutory compliance: Accounts and confirmation statement are filed on time, showing adherence to regulatory requirements.
• Tangible fixed assets investment: Ownership of motor vehicles valued net at £12,742 supports operational capability in electrical installation services.

4. Due Diligence Notes:

• Review debtor aging and collectability: Debtors total £26,798, split between trade and other debtors; assessing the risk of bad debts is important for cash flow forecasting.
• Clarify nature and terms of finance lease obligations (£7,548 total): Determine repayment schedule and impact on liquidity.
• Monitor cash flow trends and profitability in subsequent periods: Given the early stage and small scale, ongoing assessment of revenue generation and expense control is critical.
• Consider governance arrangements: Single director/shareholder structure warrants review for potential conflicts of interest or lack of oversight.