OCTAVIUS ELECTRICAL SOLUTIONS LIMITED

Executive Summary

Octavius Electrical Solutions Limited is currently facing high financial risk due to persistent negative net assets and working capital deficits, despite some improvement from the prior year. The company maintains statutory compliance but requires further investigation into operational performance and director stability to fully assess sustainability and solvency prospects.

OCTAVIUS ELECTRICAL SOLUTIONS LIMITED - Analysis Report

Company Number: 13506797

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity challenges, evidenced by persistent negative net current assets and shareholders' funds. The negative net assets position indicates that liabilities exceed assets, raising concerns about the company's ability to meet its financial obligations.

2. Key Concerns:

• Negative Net Current Assets: As of 31 July 2024, net current assets stand at -£1,882, showing improvement from -£8,814 the previous year but still reflecting a working capital deficit that may hinder day-to-day operations.
• Negative Shareholders’ Funds: The company has accumulated losses resulting in shareholders' funds of -£1,882 (down from -£8,814), indicating erosion of equity and questions about capital adequacy.
• Director and Control Changes: Recent changes in directors and control (with Mr. Paul Jackson appointed in September 2023 and Mr. Weston Kendall resigning in October 2023), coupled with two name changes within a short period, may suggest restructuring or instability, which requires further scrutiny.

3. Positive Indicators:

• Improvement in Financial Position: There is a notable reduction in the working capital deficit and accumulated losses compared to the prior year, indicating some operational or financial improvement.
• Current Filing Compliance: The company is up to date with its statutory filings, including accounts and confirmation statements, reducing regulatory compliance risks.
• Small Employee Base: With an average of 4 employees, the company may maintain a relatively lean cost structure, which could support future sustainability if revenues grow.

4. Due Diligence Notes:

• Review Income Statement and Cash Flows: The absence of profit and loss data in the filings limits assessment of operating performance and cash generation. Obtaining detailed P&L and cash flow statements is essential to evaluate operational sustainability.
• Assess Debtor Quality: The debtor balance (£4,373) relative to current liabilities needs investigation to determine collectability and impact on liquidity.
• Examine Director Backgrounds and Governance: Given recent director changes and shareholding shifts, verify any associated legal or financial risks, including potential conflicts or history of insolvency-related issues.
• Evaluate Business Model and Market Position: Understanding the company’s contracts, customer base, and competitive positioning in electrical installation is important to gauge future prospects.