SWSINSTALLATION LTD

Executive Summary

SWSINSTALLATION LTD operates as a micro-entity in the electrical installation sector with a small employee base and modest asset size. While it maintains positive working capital and compliance with filing obligations, the decline in net assets and significant long-term liabilities suggest moderate solvency risks. Further financial analysis and operational review are advised to confirm sustainability.

SWSINSTALLATION LTD - Analysis Report

Company Number: 14257527

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and fixed assets over the last reporting period, with modest working capital. While it is not currently overdue on filings and remains active, the reduced net asset base and presence of long-term liabilities relative to total assets indicate moderate solvency risk.

2. Key Concerns:

• Declining net assets: Shareholders’ funds decreased from £22,170 in 2023 to £14,490 in 2024, indicating erosion of equity, which could be a sign of operating losses or asset write-downs.
• Long-term liabilities: The company carries £11,400 in creditors due after more than one year as of 2024, a significant proportion relative to total assets (£25,890), potentially impacting long-term solvency.
• Small scale and limited financial disclosure: As a micro-entity with only 2 employees and minimal asset base, financial resilience and operational scale are limited, increasing vulnerability to market or operational disruptions.

3. Positive Indicators:

• Positive net current assets: The company maintains a positive working capital position (£11,430 in 2024), suggesting it can meet short-term obligations.
• Timely compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Stable employee base: Consistent employee count (2) over the reported periods shows operational continuity.

4. Due Diligence Notes:

• Review profit and loss details and cash flow statements (not provided here) to understand the drivers behind the decline in net assets and fixed assets.
• Investigate the nature and terms of the long-term liabilities to assess risk of refinancing or covenant breaches.
• Assess contracts, client base, and market position to evaluate sustainability of operations given the micro scale.
• Confirm absence of director or related party concerns as no director conduct records were provided.