TMS ELECTRICAL SOLUTION LIMITED

Executive Summary

TMS Electrical Solution Limited presents a low risk profile based on available financial data, showing adequate liquidity and compliance. However, its micro-entity status, concentrated ownership, and limited operational scale warrant further due diligence to confirm long-term stability and growth potential. Overall, the company appears solvent and compliant but remains early stage with limited financial disclosure.

TMS ELECTRICAL SOLUTION LIMITED - Analysis Report

Company Number: 14120823

Analysis Date: 2025-07-29 18:25 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets and shareholders' funds with no overdue filings and a stable director structure. The financials show modest but consistent working capital and no indication of solvency distress at this stage.

2. Key Concerns:

• Limited financial scale and scope: As a micro-entity incorporated recently (2022), the company has limited financial history and size, which could pose challenges in scaling or absorbing shocks.
• Single director and sole controller: Mr. Tonin Avdia holds full ownership and voting rights, which concentrates control and may impact governance and succession risk.
• Minimal employee base: The average number of employees is very low (2 in 2024), which may constrain operational capacity and sustainability if demand increases or key personnel depart.

3. Positive Indicators:

• Positive net current assets (~£55k) covering current liabilities indicate sound short-term liquidity.
• No overdue accounts or confirmation statements, reflecting compliance with statutory filing requirements and regulatory obligations.
• Stable or slightly increasing current assets year over year, suggesting some growth or at least maintenance of working capital.

4. Due Diligence Notes:

• Review detailed cash flow statements and turnover figures (not provided) to confirm operational cash generation and revenue trends.
• Assess contracts and client base to evaluate sustainability and growth prospects in the electrical installation sector.
• Investigate director background and any potential related party transactions given sole control by Mr. Avdia.
• Consider the impact of the micro-entity accounting regime on transparency and financial detail, and whether more detailed accounts could be requested.
• Verify any contingent liabilities or off-balance sheet obligations that might affect solvency.