THOMAS METCALFE ELECTRICAL LIMITED

Executive Summary

Thomas Metcalfe Electrical Limited presents as a low-risk investment based on its positive working capital and compliance record. However, asset reductions and limited staffing warrant further review to ensure continued operational stability. Overall, the company appears solvent with no immediate regulatory concerns.

THOMAS METCALFE ELECTRICAL LIMITED - Analysis Report

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.