Company Number: 13554823

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: HIGH
   The company demonstrates ongoing negative working capital, minimal net assets, and past accumulated losses only recently reversed to a marginal positive net asset position. These factors suggest significant solvency and liquidity risk.

2. Key Concerns:

• Persistent negative net current assets (working capital deficit) across all reported years, though slightly improved in 2024, indicating potential liquidity pressures to meet short-term obligations.
• Historically negative net assets and shareholder funds until 2024, with only a nominal positive balance of £4, reflecting very thin equity and limited financial cushion.
• Single director/employee structure with sole control may raise operational concentration risks and limited management resource to address financial or operational challenges.

3. Positive Indicators:

• The company has remained active and compliant with filing requirements, with no overdue accounts or confirmation statements.
• A recent improvement in net assets from negative £1,477 in 2023 to a marginal positive of £4 in 2024, suggesting some progress in financial management or profitability.
• Micro-entity status with low fixed assets and a small scale operation, potentially allowing for lean cost structures and flexible operations.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow statements (not provided here) to assess the source of improvements in net assets and the sustainability of cash flows.
• Investigate the nature and turnover of current liabilities to determine if short-term debts are being managed effectively or if refinancing risks exist.
• Confirm the operational model and client base in the electrical installation industry to evaluate business sustainability and growth prospects, especially given the one-person staff complement.