T-LEK ELECTRICAL LTD

1. Risk Rating: MEDIUM

The company presents positive net assets and liquidity at the latest year end, with Companies House filings up to date and no insolvency proceedings indicated. However, it was incorporated in July 2023, has only two years of abbreviated public accounts, carries a £25,000 long-term creditor of undisclosed nature, and reports no employees or non-cash current assets, which constrains the assessment of sustainable operations.

2. Key Concerns

• Limited trading history: Incorporated on 13 July 2023, the company has only two financial years on the public record, providing a thin evidence base for assessing cyclicality, recurring profitability, or resilience in the electrical installation sector.
• Undisclosed long-term creditor: The balance sheet shows £25,000 of creditors falling due after more than one year (approximately 38% of net assets) described only as “other creditors.” The counterparty, security, and repayment terms are not visible in the filed accounts.
• Balance sheet composition and operational capacity: Current assets consist entirely of cash (£36,997), with no disclosed debtors, stock, or work-in-progress for an installation business. The accounts record zero employees, suggesting service delivery relies entirely on directors or subcontractors.

3. Positive Indicators

• Net assets and shareholders’ funds increased from £18,040 (year ending 31 July 2024) to £66,118 (year ending 31 July 2025).
• Cash at bank of £36,997 exceeds creditors falling due within one year of £20,328 (VAT), resulting in positive net current assets of £57,325.
• Accounts and confirmation statement filings are not overdue; the company is not in liquidation, administration, or receivership.
• The company has appropriately claimed audit exemption under the small companies regime, consistent with its size and filing category.

4. Due Diligence Notes

• Obtain the profit and loss account, which was not delivered to the Registrar, to determine whether the increase in net assets arises from trading profits or capital introduction.
• Clarify the identity and repayment terms of the £25,000 creditor due after more than one year (for example, a director loan, government-backed financing, or third-party creditor).
• Investigate the absence of debtors, stock, or work-in-progress on the balance sheet; confirm whether this reflects filleted presentation, cash-in-advance trading, or subcontractor arrangements.
• Establish how operations are delivered with zero recorded employees and whether directors are remunerated through payroll, dividends, or director’s loan accounts.
• Review the £20,328 VAT creditor for HMRC payment status and any agreed time-to-pay arrangement.