Company Number: 13052575

Analysis Date: 2025-07-29 13:24 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net assets and positive working capital but shows a significant decline in net assets from £999 in 2022 to £110 in 2023. The low cash balance (£121 in 2023) relative to current liabilities (£3,291) may point to liquidity constraints. No overdue filings or insolvency status mitigate some concern, but the financial position is fragile.

2. Key Concerns:

• Sharp decline in net assets and shareholders’ funds from £999 (2022) to £110 (2023), indicating erosion of equity base.
• Minimal cash holdings (£121) compared to current liabilities (£3,291) raises liquidity risk and potential cash flow stress.
• Presence of long-term creditors (£720) without corresponding asset growth could pressure solvency if not managed.

3. Positive Indicators:

• Company is active with no overdue statutory filings, suggesting regulatory compliance and governance are maintained.
• Positive net current assets (£830 in 2023) indicate short-term assets exceed short-term liabilities, supporting operational liquidity in the near term.
• Small and focused business in electrical installation with stable staffing (average 2 employees), implying operational simplicity and potentially manageable overheads.

4. Due Diligence Notes:

• Investigate reasons behind the sharp drop in net assets and retained earnings during 2023, including any extraordinary expenses or losses.
• Review cash flow statements to assess operational cash generation and any timing mismatches in receivables/payables.
• Examine creditor aging and terms on both current and long-term liabilities to evaluate refinancing or repayment risks.
• Confirm no director disqualifications or regulatory sanctions beyond the provided data.
• Understand client base and contract pipeline to assess sustainability of revenue and margins.