ORANGE ELECTRICAL INSTALLATIONS LTD

Executive Summary

Orange Electrical Installations Ltd operates on a very small scale with persistent liquidity challenges evidenced by negative net current assets and minimal equity. While regulatory compliance is satisfactory and centralized ownership may aid agility, the company’s financial position presents a high risk of cash flow difficulties. Further investigation into cash management and operational viability is recommended before considering investment.

ORANGE ELECTRICAL INSTALLATIONS LTD - Analysis Report

Company Number: 14583229

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to ongoing negative net current assets, minimal equity base, and lack of liquidity, which raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £10,278 as of January 2025, indicating potential liquidity issues and inability to cover short-term debts with current assets.
• Minimal Shareholders’ Funds: Equity stands at a nominal £32, down from £222 the previous year, reflecting limited financial buffer or retained earnings to absorb losses or support operations.
• Very Limited Operational Scale: Only one employee on average and micro-entity filing status suggest a very small-scale operation, potentially vulnerable to market or operational shocks.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are current and not overdue, indicating good regulatory compliance and governance discipline.
• Sole Director and PSC Stability: The same individual (Jason Trim) is both director and 75-100% shareholder, ensuring centralized control which may facilitate swift decision-making and strategy execution.
• No Indication of Insolvency Procedures: The company is active and not in liquidation, administration, or receivership, which suggests it is currently continuing as a going concern.

4. Due Diligence Notes:

• Investigate the causes behind persistent negative working capital and whether this stems from operational cash flow deficits or timing differences in payables/receivables.
• Review detailed cash flow statements and bank facilities to assess liquidity management and potential reliance on director loans or external funding.
• Assess the business model’s sustainability given the very small scale and minimal assets, including customer base and contract pipeline, to determine prospects for growth or stabilization.