Company Number: 13132480

Analysis Date: 2025-07-20 13:41 UTC

1. Credit Opinion: APPROVE
   S.P.E.D ELECTRICAL LIMITED demonstrates improving financial health with increasing net assets and positive working capital. The company is active, current on filings, and operates in a stable niche (electrical installation). Its modest size and simplicity of operations reduce business complexity risk. No adverse director records or overdue filings are noted. The ability to generate net current assets and maintain positive shareholders' funds supports repayment capacity for credit facilities consistent with its scale.

2. Financial Strength:
   The company’s net assets have grown from £5,081 in 2022 to £14,573 in 2025, indicating retained earnings accumulation and balance sheet strengthening. Fixed assets have declined slightly but remain consistent with the business’s operational needs. Current assets exceed current liabilities by £9,410 at the latest year-end, reflecting solid short-term financial stability. The low level of long-term liabilities (£1,469) and modest share capital (£1) align with micro-entity norms and indicate limited leverage.

3. Cash Flow Assessment:
   Working capital is positive and improving, with current assets of £30,250 versus current liabilities of £20,840. The company likely maintains sufficient liquidity to meet short-term obligations. However, cash flow details are limited due to micro-entity reporting exemption, so close monitoring of debtor collections and creditor payments is advisable. The small employee base (2 staff) suggests operational costs are manageable, supporting consistent cash flow.

4. Monitoring Points:

• Track debtor days and creditor payment terms to ensure working capital remains positive.
• Monitor profitability trends as the P&L reserve is not disclosed; sustained profit generation is key for continued net asset growth.
• Watch any changes in fixed asset investment to assess capital expenditure needs or potential financial strain.
• Review director conduct and compliance status regularly to mitigate governance risks.