Company Number: 13640086

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: MEDIUM
   While OLI ELECTRIC LTD shows growth in net assets and maintains compliance with filing deadlines, the notable long-term creditor balance and relatively modest asset base for a construction-related business introduce moderate solvency and liquidity risks.

2. Key Concerns:

• Long-term liabilities: The company reports £47,456 in creditors due after one year as of 2024, which is a significant obligation relative to its net assets (£38,634). This could pressure future cash flows if not managed effectively.
• Modest asset base and scale: As a micro-entity with only two employees and fixed assets of £56,320, the company’s operational scale is limited, potentially impacting its ability to absorb shocks or expand rapidly.
• Recent incorporation and limited financial history: Incorporated in late 2021, the company has a short operating track record. While growth in net assets is positive, the limited financial history restricts the ability to assess long-term operational stability fully.

3. Positive Indicators:

• Timely and compliant filings: Both accounts and confirmation statements are up to date with no overdue filings, indicating sound governance and regulatory compliance.
• Growth in net assets and working capital: Net assets increased from £7,881 in 2023 to £38,634 in 2024, and net current assets improved significantly from £7,881 to £29,770, reflecting positive financial development.
• Clear ownership and governance: A single director and 100% shareholder control by Mr. Nikolaus Perolli simplifies decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors amounting to £47,456 to understand repayment schedules and potential refinancing risks.
• Review cash flow statements and profit & loss accounts (if available) to gauge operational cash generation and sustainability.
• Confirm if the company has any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Assess the company’s client base and contract pipeline given the SIC codes related to electrical and utility construction to evaluate revenue stability and growth prospects.
• Verify the director’s background and experience given the sole director status to assess management capability.