Company Number: 14630009

Analysis Date: 2025-07-20 15:47 UTC

1. Credit Opinion: DECLINE
   NSP Electrical Limited is a newly incorporated micro-entity with a very limited operating history, showing minimal net assets (£3,254) and negative net current assets as per the accounts document (note the conflicting figures in the extracted balance sheet but overall the net assets are very low). The company’s total liabilities exceed its net assets, indicating a weak balance sheet position. Given the lack of trading history, minimal scale (one employee), and low capitalization, the company currently lacks sufficient financial strength and collateral to support a credit facility without significant risk. Additionally, the director is the sole shareholder and operator, which concentrates risk.

2. Financial Strength:
   The company’s balance sheet as of 28 February 2024 shows fixed assets of £45,447, current liabilities of approximately £22,649, and total net assets of roughly £3,254. The presence of liabilities exceeding net assets in some reported figures suggests tight equity capital and limited buffer against financial stress. The micro-entity status and limited disclosures restrict visibility, but the company appears undercapitalized relative to potential working capital needs.

3. Cash Flow Assessment:
   No explicit cash flow statements or profit and loss data are provided, but net current assets are low, indicating limited working capital. With only one employee and presumably start-up operational scale, liquidity may be constrained, and the ability to meet short-term obligations is uncertain. The company should be monitored for timely payment of creditors and sustaining positive cash inflows from operations.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statements to track financial progress.
• Improvement in net current assets and net profitability, indicating operational viability.
• Cash flow statements if available, to confirm liquidity trends.
• Any additional capital injections or external funding to strengthen equity.
• Continued compliance with statutory filings to avoid regulatory risk.