Company Number: 13738737

Analysis Date: 2025-07-29 14:36 UTC

1. Credit Opinion: APPROVE
   Ockelton Electrical Contractors Ltd demonstrates a solid financial position for a young private limited company in the electrical installation sector. The company shows improving net current assets and shareholders' funds, indicating an ability to meet short-term obligations and some retained earnings accumulation. No overdue filings or director disqualifications are reported, supporting trustworthy management. The scale of operations is small with one employee (likely the director), which implies a focused but manageable business risk profile. Based on the available data, the company appears capable of servicing credit facilities.

2. Financial Strength:
   The balance sheet as of 30 November 2023 reflects total net current assets of £21,409, up from £7,725 the previous year, showing a strong improvement in working capital. Shareholders’ funds increased from £9,188 to £22,863, evidencing retained earnings growth. Fixed assets are minimal at £1,454, consistent with a service-based contracting business. Current liabilities are modest at £8,670 and primarily consist of taxation and social security (£6,981). The company maintains a healthy equity base relative to liabilities, with no long-term debt reported, indicating low financial leverage and a conservative capital structure.

3. Cash Flow Assessment:
   Cash at bank grew significantly from £4,172 to £16,772, improving liquidity. Debtors increased from £9,470 to £13,307, which should be monitored for collection efficiency but remain reasonable given the company's growing scale. The positive net current assets position (£21,409) suggests sufficient working capital to cover short-term liabilities. Overall, the company shows adequate liquidity and cash flow management for its size, with no signs of cash flow stress.

4. Monitoring Points:

• Debtor aging and collection period to ensure cash inflows remain timely and do not impair liquidity.
• Continued growth in retained earnings and net assets to sustain creditworthiness as the company expands.
• Taxation and social security creditor balances should be monitored for timely settlement to avoid compliance issues.
• Impact of any operational scaling on working capital requirements, especially if staff or fixed assets increase.
• Director’s management capacity given the single-employee structure; any changes in management or business strategy should be reviewed.