Company Number: 13254338

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: LOW
   RAS Electrical Limited demonstrates a strong financial position with solid net current assets and net assets growth over recent years. The company is compliant with filing deadlines and has no indications of regulatory or governance issues. The presence of significant cash reserves and positive working capital reduces immediate solvency and liquidity concerns.

2. Key Concerns:

• Concentration of control: Mr. Ryan Andrew Sarsons holds a majority shareholding (75-100%) and significant voting rights, which could pose governance risks if not balanced by independent oversight.
• Limited size and scale: As a relatively new company (incorporated 2021) operating as a micro/small entity, it may face operational risks related to market competition or economic downturns.
• Related party transactions: Minimal director advances/credits have been recorded, but these should be monitored for potential conflicts or liquidity impacts.

3. Positive Indicators:

• Strong liquidity: Cash holdings increased substantially from £181,918 (2024) to £356,443 (2025), and net current assets grew from £130,669 to £327,719, indicating robust short-term financial health.
• Improving net assets: Shareholders' funds nearly tripled within one year from £130,669 to £388,566, suggesting profitable operations or capital injections.
• Compliance: No overdue filings or missing accounts; accounts prepared under applicable UK financial reporting standards and signed off by directors with a reputable chartered accounting firm.

4. Due Diligence Notes:

• Review the source of the significant increase in cash and net assets in the latest financial year to confirm sustainability (e.g., profits, equity injections, or asset disposals).
• Assess the nature and terms of director advances/credits to ensure no undue financial risk or governance issues.
• Evaluate operational risks related to market positioning, client concentration, and business continuity given the company’s young age and industry sector (electrical installation).