Company Number: 15605773

Analysis Date: 2025-07-20 15:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SRC Compliance Electrical Services Ltd is a newly incorporated micro-entity with limited operating history (incorporated March 2024) and very modest financial size. Its positive net current assets (£2,123) and net assets (£971) indicate a small but positive equity position. However, the limited scale, lack of extensive financial history, and low asset base mean credit exposure should be cautious and conditional on ongoing performance monitoring. The company’s directors are also shareholders, which may align interests but adds concentration risk. Credit facilities should be modest and potentially secured or guaranteed, with a focus on short-term working capital needs.

2. Financial Strength:
   The balance sheet shows a total net asset base of £971 at year-end March 2025, reflecting a very small equity base. Current assets (£4,770) exceed current liabilities (£2,647), resulting in a positive net working capital position of £2,123. However, the presence of creditors falling due after more than one year (£204) and accruals/deferred income (£948) reduces the overall net assets. The company’s financial strength is minimal but not negative; however, the entity lacks tangible fixed assets and retains no significant reserves. The micro-entity status limits available financial details but suggests a start-up phase with constrained resources.

3. Cash Flow Assessment:
   No detailed cash flow statement is provided, but the working capital position is positive, indicating the company can currently meet short-term obligations. The small scale (2 employees) and micro-entity classification imply limited operational complexity and cash demands. However, the modest asset base and accruals suggest close management of cash flow will be required to avoid liquidity stress. The company’s ability to generate consistent operating cash flow remains unproven due to its infancy.

4. Monitoring Points:

• Quarterly review of cash flow and working capital to ensure liquidity remains positive.
• Timely filing of next accounts and confirmation statements to maintain regulatory compliance.
• Monitor revenue growth and profitability to assess scalability and debt servicing capacity.
• Watch for any increases in creditors or deferred income that may indicate timing mismatches or liquidity constraints.
• Review director and shareholder changes, especially given the concentration of ownership and control.