MEGALODON ELECTRICAL LTD

Executive Summary

Megalodon Electrical Ltd exhibits weak financial strength, with negligible net assets and consistent working capital deficits, indicating limited ability to service credit obligations. The company’s micro entity status and minimal scale further constrain its financial resilience. Due to these factors, credit approval is not recommended without significant improvement in liquidity and equity.

MEGALODON ELECTRICAL LTD - Analysis Report

Company Number: 14363604

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: DECLINE. Megalodon Electrical Ltd is a micro entity with minimal net assets (£1) and persistent net current liabilities (working capital deficits) over the last two years. Despite being active since 2022, the company has not demonstrated positive working capital or build equity, indicating limited financial resilience and capacity to service debt or meet additional credit obligations. The absence of an audit and a profit and loss statement limits insight into profitability, but current balance sheet figures suggest weak financial strength.

2. Financial Strength: The balance sheet shows very low fixed assets (£365 in 2024, down from £456 in 2023) and current assets of £15,783 against current liabilities of £16,147, resulting in negative net current assets of £364. Net assets remain at £1, implying no retained earnings or shareholder equity growth. The company relies heavily on short-term funds with no buffer, posing risk if liabilities crystallize or cash inflows slow. The static net asset position and recurring working capital deficits signal fragile financial health.

3. Cash Flow Assessment: Current liabilities slightly exceed current assets, indicating tight liquidity and potential cash flow constraints. With only one employee and minimal fixed assets, operational scale is very small, which may limit cash generation capacity. The company’s inability to generate positive working capital suggests that day-to-day operations may struggle to cover short-term obligations without external funding or shareholder support.

4. Monitoring Points:

• Watch for improvement in net current assets and overall liquidity.
• Monitor any changes in shareholder funding or capital injections.
• Track filing of full accounts including profit and loss for profitability insights.
• Assess director conduct and any changes in control or management structure.
• Observe industry and economic conditions affecting electrical installation demand.