M.B.E ELECTRICAL LIMITED

Executive Summary

M.B.E Electrical Limited is a recently established micro-entity with a modest equity base but negative net working capital, indicating potential short-term liquidity pressures. The company has complied with regulatory filings and is under clear single-person control, though limited operational scale and financial history present moderate risk for investors. Further examination of liabilities and cash flow is recommended to better assess ongoing viability.

M.B.E ELECTRICAL LIMITED - Analysis Report

Company Number: 14718728

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated and classified as a micro-entity with limited financial history. The presence of net current liabilities indicates a short-term liquidity concern, but the positive shareholders' funds and absence of overdue filings reduce immediate solvency risk. Overall, the financial position suggests moderate risk typical of early-stage businesses.

2. Key Concerns:

• Negative net current assets (£-977) indicate the company may have difficulty meeting short-term liabilities, raising liquidity risk.
• The company has only one employee and limited fixed assets (£9,441), which may constrain operational capacity and growth potential.
• As a newly formed entity (incorporated March 2023) with only one year of financials, there is limited track record to assess long-term sustainability and profitability.

3. Positive Indicators:

• The company is fully compliant with filing requirements; no overdue accounts or confirmation statements were noted.
• Shareholders’ funds (£8,464) exceed net liabilities, suggesting positive equity base and initial capital adequacy.
• The sole director and controlling shareholder are the same individual, indicating clear management control and accountability.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand timing and terms of repayment obligations.
• Review cash flow statements or bank statements to assess actual liquidity and working capital management.
• Evaluate business model viability and revenue streams given the early stage and minimal staffing.
• Confirm no director disqualifications or adverse regulatory issues related to the sole director.
• Monitor future filings for financial performance trends and changes in asset or liability structure.