NXT GEN ELECTRICAL SOLUTIONS LTD

Executive Summary

NXT GEN ELECTRICAL SOLUTIONS LTD demonstrates a low risk profile based on its positive net asset growth, timely regulatory compliance, and strong working capital position. However, the company’s short trading history, concentrated ownership, and relatively low cash reserves warrant further scrutiny, particularly regarding debtor quality and governance. Overall, the financial data reflects operational stability appropriate for its size and industry.

NXT GEN ELECTRICAL SOLUTIONS LTD - Analysis Report

Company Number: 13789630

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: LOW Justification: The company exhibits a solid net asset position with positive working capital and no overdue filings or indications of distress. The significant increase in net assets and net current assets from 2023 to 2024 suggests improved financial health. No signs of liquidation, administration, or director disqualifications are present.

2. Key Concerns:

   1. Limited Financial History: Incorporated in late 2021, the company has a relatively short trading history, which may limit trend analysis and increase uncertainty.
   2. Concentrated Control: The sole director and 75-100% shareholder is the same individual, which could pose governance and succession risks.
   3. Low Cash Balance: Despite strong net current assets, cash at bank remains modest (£10,506 in 2024), potentially indicating some liquidity risk if receivables are delayed or impaired.

3. Positive Indicators:

   1. Strong Working Capital: Net current assets increased substantially from £9,701 in 2023 to £72,795 in 2024, indicating improved liquidity management.
   2. No Overdue Filings: Both accounts and confirmation statements are filed on time, illustrating good regulatory compliance.
   3. Positive Net Assets and Shareholders’ Funds: Growth from £26,417 in 2023 to £82,964 in 2024 demonstrates retained profitability or capital injection.
   4. Industry Alignment: The company operates in electrical installation, a sector with steady demand, and maintains fixed assets consistent with its operations.

4. Due Diligence Notes:

   • Review detailed profit and loss information, which is currently abridged and unaudited, to assess profitability, revenue quality, and expense trends.
   • Verify the collectability of debtors (£122,793 in 2024), ensuring they are not aged or impaired, to confirm cash flow reliability.
   • Examine any provisions for liabilities (£3,257 in 2024) for potential contingent risks.
   • Assess the impact of sole director control on governance practices and operational continuity.
   • Confirm the absence of any director conduct issues or regulatory investigations beyond publicly available data.