Company Number: 14225615

Analysis Date: 2025-07-20 11:13 UTC

1. Credit Opinion: APPROVE Trydan Electrical Limited demonstrates a solid improvement in financial position over the last year, with a significant increase in net current assets and shareholders’ funds. The company’s ability to reduce current liabilities from £25,392 to £10,457 while increasing current assets and cash reserves indicates effective working capital management and improved liquidity. No overdue filings or adverse status flags are present, supporting a positive credit stance. The company is relatively young but shows signs of sound management and financial stewardship.

2. Financial Strength: The balance sheet as of 31 July 2024 shows total assets less current liabilities of £31,284, more than doubling from £13,603 the previous year, reflecting increased equity and improved solvency. Fixed assets remain modest (£11,328), consistent with the company’s electrical installation activities. The company’s net assets (shareholders’ funds) are entirely positive at £31,284, indicating no reliance on external equity or accumulated losses. The reduction in current liabilities and increase in debtors suggests improved operational efficiency.

3. Cash Flow Assessment: The company holds £14,309 in cash at year-end, a slight decrease from the prior year but still healthy relative to short-term liabilities. Current assets of £30,413 comfortably cover current liabilities of £10,457, producing a strong net current asset position of £19,956, which is a key indicator of liquidity and short-term solvency. The increase in trade and other debtors from £9,835 to £16,104 should be monitored, but the substantial reduction in creditors mitigates risk. Working capital management appears robust.

4. Monitoring Points:

• Continued monitoring of debtor collection periods is recommended to ensure receivables remain collectible and do not impair liquidity.
• Watch cash flow trends to maintain sufficient liquidity for operational needs, especially as the company grows.
• Monitor fixed asset utilization and capital expenditure to ensure efficient asset management.
• Keep track of any changes in creditors or unexpected liabilities that may signal cash flow pressure.
• Given the company’s young age, track profitability trends once income statements are available to confirm sustainable earnings generation.