NORWICH ELECTRICAL HOLDINGS LTD

Executive Summary

Norwich Electrical Holdings Ltd demonstrates a low financial risk profile primarily due to its substantial cash reserves and absence of current liabilities. The company maintains good regulatory compliance and transparent governance. However, the limited operational scale and short financial history warrant further investigation into the sustainability of its cash position and the nature of its subsidiary investments.

NORWICH ELECTRICAL HOLDINGS LTD - Analysis Report

Company Number: 13113403

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: LOW
   The company exhibits a strong liquidity position with substantial cash reserves as of the latest financial year end. No current liabilities are reported, and shareholders' funds are significantly positive. The filing status is current with no overdue accounts or confirmation statements, indicating good compliance.

2. Key Concerns:

• Limited financial history: The company was incorporated in 2021 and has only two years of filed accounts, limiting trend analysis.
• Small operational scale: The company has only one employee reported, which may imply limited operational capacity or reliance on directors.
• Investment concentration: Fixed assets consist solely of investments in subsidiaries valued at £6,000, suggesting a narrow asset base that may affect business diversification or resilience.

3. Positive Indicators:

• Strong cash position: Cash balance rose dramatically from £4,101 in 2023 to over £1.5 million in 2024 with zero current liabilities, indicating excellent short-term financial strength.
• No overdue filings: Timely submission of accounts and confirmation statements reduces regulatory risk.
• Stable governance: Directors are appropriately appointed and no disqualifications or governance issues are evident; significant control is clearly documented.

4. Due Diligence Notes:

• Investigate the source and sustainability of the large cash reserve to understand whether it stems from operational profits, capital injection, or other transactions.
• Review the nature and financial health of the subsidiary investments to assess overall group risk exposure.
• Confirm the company's revenue generation and operational model given the micro entity size and low employee count to evaluate business sustainability.