NHC ELECTRICAL LTD

Executive Summary

NHC ELECTRICAL LTD is a recently established micro-entity operating in electrical installation with a positive net asset position and timely compliance filings. However, limited financial history and modest working capital create some uncertainty around liquidity and operational resilience. Further inquiry into provisions and cash flow is recommended for a fuller risk assessment.

NHC ELECTRICAL LTD - Analysis Report

Company Number: 14469149

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

1. Risk Rating: MEDIUM
   The company is newly incorporated with a short operating history and a small asset base. Current assets slightly exceed current liabilities, indicating a modest working capital position, but provisions and liabilities reduce financial flexibility. The micro-entity status limits disclosure detail, restricting comprehensive risk analysis.

2. Key Concerns:

• Limited Operating History: Incorporated in late 2022, the company has less than two years of financial data, making trend analysis and sustainability assessment difficult.
• Modest Working Capital: Current assets of £24,047 against current liabilities of £17,463 yield a net current asset position of about £6,584, which is relatively thin and may limit liquidity in the event of unexpected outflows.
• Provisions for Liabilities: The presence of £2,674 in provisions suggests potential liabilities or contingent risks that could impact solvency if realized.

3. Positive Indicators:

• Positive Shareholders’ Funds: Shareholders’ funds stand at £14,649, indicating a positive net asset position after accounting for liabilities and provisions.
• No Overdue Filings: Accounts and confirmation statements are filed on time with no overdue returns or penalties, reflecting sound compliance and governance practices.
• Clear Control Structure: The sole director and significant controller is identified, facilitating accountability and decision-making.

4. Due Diligence Notes:

• Investigate the nature of the provisions for liabilities to understand any contingent risks or pending obligations.
• Review cash flow statements or bank statements to assess liquidity beyond balance sheet snapshots.
• Confirm business contracts, client base, and revenue generation to evaluate operational sustainability given the limited historical data.
• Assess director’s background for any relevant experience or risk factors, although no disqualifications are noted.