Company Number: 13099275

Analysis Date: 2025-07-20 15:59 UTC

1. Risk Rating: LOW
   Pinpoint Electrical Services Limited demonstrates a solid and improving financial position with positive net current assets, increasing net assets, and no overdue filings. The company maintains compliance and shows no indication of financial distress or operational instability.

2. Key Concerns:

• Low Cash Reserves: The cash at bank figure has dropped significantly from £7,227 in 2023 to £608 in 2024, which could signal potential liquidity constraints despite overall positive current assets primarily due to trade debtors.
• Trade Debtors Concentration: Debtors constitute a large portion of current assets (£38,877 vs. £608 cash), raising questions about the collectability and aging of these receivables, which could affect short-term liquidity.
• No Employees Reported: The company reports zero employees, which may imply reliance on contractors or owner-directors only, potentially affecting operational scalability and sustainability.

3. Positive Indicators:

• Increasing Net Assets and Shareholders’ Funds: Net assets increased from £26,882 in 2023 to £36,887 in 2024, reflecting retained earnings growth and improved financial strength.
• Positive Working Capital: Net current assets improved from £16,418 in 2023 to £26,261 in 2024, suggesting the company can comfortably meet short-term obligations.
• Up-to-date Filings and Compliance: Both accounts and confirmation statement are filed on time with no overdue status, indicating good governance and regulatory compliance.
• No External Debt After One Year: Finance lease obligations have been reduced to zero for amounts falling due after more than one year, improving long-term solvency.

4. Due Diligence Notes:

• Debtors Analysis: Investigate the aging profile and collectability of trade debtors to assess liquidity risk. Confirm whether there are any provisions for doubtful debts.
• Cash Flow Management: Review recent cash flow statements or bank statements to understand the reasons behind the sharp decline in cash balances and ensure operational cash flow sufficiency.
• Operational Model: Clarify the operational structure given zero employees reported—confirm if work is outsourced or performed by directors and implications for business continuity.
• Director and PSC Background: Review credit and conduct records for the director and persons with significant control to rule out any operational or governance risks.