THOMPSON ELECTRICAL SOLUTIONS LTD

Executive Summary

Thompson Electrical Solutions Ltd exhibits a strengthening financial position with improving net assets and positive working capital, supported by stable cash balances. The company’s modest scale and manageable liabilities are typical for its size but show healthy operational performance, supporting approval for credit facilities. Ongoing monitoring of debtor management and working capital will ensure continued creditworthiness.

THOMPSON ELECTRICAL SOLUTIONS LTD - Analysis Report

Company Number: 13216223

Analysis Date: 2025-07-29 15:32 UTC

1. Credit Opinion: APPROVE
   Thompson Electrical Solutions Ltd demonstrates improving financial health with growing net assets and positive working capital, indicating capability to meet short-term liabilities. The company operates in electrical installation, a stable sector, and is managed by a single director with relevant industry experience. No adverse status or overdue filings are noted. While small, the firm shows upward financial trends and manageable liabilities, supporting credit approval for modest facilities.

2. Financial Strength:
   The company has grown net assets from £2,996 in 2021 to £13,980 in 2024, reflecting retained earnings accumulation and overall balance sheet strengthening. Tangible fixed assets are modest (£6,354) but stable, with no long-term debt after finance lease obligations were cleared in 2024. Share capital is minimal (£1), typical of small private companies. Current assets exceed current liabilities by £9,154, a solid improvement from a negative working capital position in 2021.

3. Cash Flow Assessment:
   Cash holdings remain stable at about £7,267, providing a base liquidity cushion. Debtors have increased in line with turnover growth, but trade creditors and tax liabilities remain controlled. The company has no long-term borrowings, and director loans are modest (£3,163). Positive net current assets and increasing retained profits suggest adequate operational cash flow to service short-term obligations and modest credit lines.

4. Monitoring Points:

• Maintain monitoring of debtor collection periods to ensure cash flow remains strong, as trade debtors have increased significantly.
• Watch working capital carefully if business expands rapidly, ensuring current liabilities do not outstrip current assets.
• Monitor director loans and any changes in lease or finance obligations that could impact liquidity.
• Keep oversight on timely filing and compliance to avoid penalties or reputational risk.