S WRIGHT ELECTRICAL LIMITED

Executive Summary

S WRIGHT ELECTRICAL LIMITED is a newly incorporated electrical installation company exhibiting early signs of financial stress, notably negative net assets and a working capital deficit. While regulatory compliance is current and ownership is clearly defined, the company faces liquidity challenges with minimal cash reserves and liabilities exceeding assets. Further due diligence is recommended to assess debtor quality, liability terms, and management’s plans for financial stabilization.

S WRIGHT ELECTRICAL LIMITED - Analysis Report

Company Number: 15112662

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: HIGH
   Justification: The company has negative net current assets (£-440) and negative shareholders' funds (£-540) within its first financial year. The current liabilities exceed current assets, indicating potential solvency and liquidity concerns. The very low cash balance (£45) further exacerbates the liquidity risk.

2. Key Concerns:

• Negative net assets and shareholders’ funds suggest the company is currently insolvent on a balance sheet basis.
• Current liabilities exceeding current assets indicate a working capital deficit, raising questions about the company’s ability to meet short-term obligations.
• Minimal cash on hand (£45) compared to creditors due (£7,236) implies potential cash flow constraints to sustain operations.

3. Positive Indicators:

• The company is compliant with filing deadlines; accounts and confirmation statement are up to date, indicating no immediate regulatory compliance issues.
• The sole director and significant controller, Mr. Steven Wright, appears to have a stable and transparent control structure with 75-100% ownership and voting rights.
• The business is newly incorporated (September 2023), and the financials cover the first accounting period, which may imply early-stage operational challenges rather than established distress.

4. Due Diligence Notes:

• Investigate the nature and timing of the £6,751 debtors balance to assess collectability and impact on liquidity.
• Clarify the composition and payment terms of current liabilities (£7,236), including the £3,392 corporation tax liability, to evaluate immediate cash requirements.
• Obtain management projections and cash flow forecasts to understand how the company plans to address the negative net assets and working capital deficit.
• Review any related party transactions or director loans that may affect financial stability.
• Assess operational contracts or order book to gauge sustainability and potential for revenue growth.