MOORCROFT ELECTRICAL SERVICES LTD

Executive Summary

MOORCROFT ELECTRICAL SERVICES LTD demonstrates a sound short-term financial position with positive net assets and no compliance issues. However, the declining current assets and limited financial disclosure warrant further investigation into cash flows and operational sustainability before assessing long-term risk. Overall, the company presents a low risk profile typical of a small, early-stage business with adequate liquidity at present.

MOORCROFT ELECTRICAL SERVICES LTD - Analysis Report

Company Number: 14460928

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: LOW
   The company displays a stable financial position with positive net current assets and net assets, no overdue filings, and is within micro-entity reporting thresholds. There are no indications of insolvency or regulatory non-compliance.

2. Key Concerns:

• Declining current assets from £18,296 in 2023 to £12,024 in 2024 could indicate reduced liquidity or cash flow tightening.
• Small scale of operations (micro-entity category with only 2 employees) may limit business resilience to market or operational shocks.
• Lack of detailed profit and loss or cash flow information restricts full assessment of operational performance and sustainability.

3. Positive Indicators:

• Positive net current assets (£9,272) and net assets indicate solvency and ability to meet short-term obligations.
• No overdue statutory filings (accounts and confirmation statements up to date) demonstrating regulatory compliance.
• Sole director and 100% shareholder is the founder, suggesting clear control and potentially streamlined decision-making.
• The company is active and recently incorporated (Nov 2022), which is consistent with early-stage business growth.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements and cash flow reports to assess revenue trends, profitability, and operational cash generation.
• Review customer and supplier contracts to evaluate revenue visibility and payment terms impacting liquidity.
• Verify any contingent liabilities or off-balance-sheet risks not visible in micro-entity accounts.
• Confirm whether the decline in current assets is due to planned investment or operational cash constraints.
• Ascertain if the company has sufficient working capital or access to credit facilities to support growth and manage payables.