Company Number: 12691831

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: LOW
   Thomas Metcalfe Electrical Limited demonstrates a stable financial position with positive net current assets and shareholders' funds. The company is active, up to date with filings, and operates within the micro-entity accounting regime, suggesting straightforward financials without audit requirements. No indications of regulatory or compliance issues are evident.

2. Key Concerns:

• Declining Asset Base: Fixed assets have decreased from £9,718 in 2021 to £3,765 in 2024, which could suggest asset disposals or underinvestment in operational infrastructure.
• Reduced Current Assets: Current assets declined from £46,170 in 2023 to £31,902 in 2024, potentially indicating lower cash or receivables levels that might impact liquidity.
• Single Employee Reliance: The company has an average of one employee, which may limit operational capacity and scalability.

3. Positive Indicators:

• Positive Net Current Assets: At £15,441 as of June 2024, the company holds a healthy working capital position to cover short-term liabilities.
• Stable Shareholders' Funds: Equity remains positive at £19,206, reflecting retained value in the business despite some asset reductions.
• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating good governance and regulatory compliance.
• Director Stability: Single director appointed since incorporation with no disqualifications or compliance issues noted.

4. Due Diligence Notes:

• Investigate the reasons behind the decline in fixed assets to understand if this impacts operational capabilities or reflects planned restructuring.
• Review cash flow and debtor aging to assess if the drop in current assets is due to collection issues or reduced business activity.
• Evaluate business model sustainability given the reliance on a sole employee and director, including contingency plans for continuity.
• Confirm no undisclosed liabilities or contingent risks not apparent from the micro-entity filings.