Company Number: 13100375

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets and shareholders' funds as of the latest financial year. The presence of substantial long-term liabilities exceeding total assets suggests a risk of insolvency if obligations cannot be met.

2. Key Concerns:

• Negative Net Assets: The company reported net assets of £-4,842 in 2022, a sharp decline from positive net assets in prior years, indicating erosion of equity and financial distress.
• Large Long-Term Creditors: Creditors falling due after more than one year total £29,017, which far exceeds both current assets and total assets less current liabilities, raising concerns over the company’s ability to service debt.
• Minimal Current Assets and Working Capital: Current assets stand at only £719 against current liabilities of £29,017, resulting in negative net current assets, which signals potential liquidity problems in meeting short-term obligations.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active and has no overdue filings for accounts or confirmation statements, suggesting good regulatory compliance and governance practices.
• Consistent Director Involvement: The sole director has been in place since incorporation and appears to be directly involved in the electrical installation business, potentially indicating operational continuity.
• Micro-Entity Status: The company qualifies as a micro-entity, which reduces filing complexity and costs, appropriate for a small-scale business.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment schedules, interest costs, and potential refinancing risks.
• Obtain profit and loss account details, as these were not filed, to evaluate revenue streams, profitability, and operational cash flows.
• Clarify the reasons behind the sharp deterioration in net assets between 2021 and 2022, including any extraordinary expenses, write-offs, or impairment losses.
• Assess the company’s ability to generate positive cash flows given the minimal current assets and working capital deficits.
• Confirm if there have been any director loans or related party transactions that may impact financial stability.