ELECTRA POLYMERS LIMITED

1. Risk Rating

MEDIUM — with a LOW solvency sub-rating.

The company’s balance sheet is strong: positive net assets of £5.32m, low total creditors of c.£0.89m, and substantial net current assets of £4.69m. However, the overall risk rating is held at MEDIUM because the available accounts are unaudited and abridged, no profit and loss or cash flow information is provided, cash has fallen sharply since FY2022, and some corporate filing dates in the supplied data appear inconsistent and require verification.

2. Key Concerns

1. Sharp decline in cash despite positive net assets
   Cash fell from £3.17m at FY2022 to £0.99m at FY2025, a decline of c.69%. Liquidity remains adequate — cash covers current liabilities c.1.15x and the current ratio is c.6.5x — but the trend is a warning sign. Without a cash flow statement or income statement, it is not possible to determine whether the decline reflects working-capital absorption, capital expenditure, dividends, taxation, or weaker operating cash generation.

2. Limited financial transparency
   The latest filed accounts are unaudited, abridged, and audit-exempt under the small companies regime. The income statement has not been delivered. Turnover, gross margin, operating profit, EBITDA, and operating cash flow are therefore unavailable. This materially limits assessment of earnings quality, profitability, and debt-servicing capacity over time. Debtors of £3.32m represent c.60% of current assets, and stocks of £1.24m represent c.22%; no ageing, concentration, or provisioning detail is provided.

3. Data consistency and governance changes to verify
   The provided data contains apparent date inconsistencies: accounts information shows a last made-up date of 31 January 2026, while the latest filed accounts text is for the year ended 31 January 2025; the confirmation statement “last made up” date of 18 September 2026 and a director resignation dated 23 September 2026 appear future-dated relative to the current date. There have also been recent officer changes, including the resignation of Xxxxxx Xxxxxxxxname shown to subscribers as director and secretary on 1 February 2026 and Xxxxxx Xxxxxxxxname shown to subscribers as director on 23 September 2026. These may be routine, but they warrant confirmation against Companies House records.

3. Positive Indicators

• Strong solvency position: Net assets of £5.32m at FY2025, up from £4.93m at FY2024 and £4.38m at FY2021. Shareholders’ funds are positive and have grown over the period shown.
• Low leverage: Total creditors per the latest filed accounts are c.£0.89m against total assets of £6.21m, implying liabilities of only c.14% of total assets.
• Good liquidity: Current assets of £5.55m cover current liabilities of £0.86m by c.6.5x. Net current assets are £4.69m. Cash of £0.99m alone covers current liabilities c.1.15x.
• No overdue filings in the provided data: Accounts and confirmation statement are marked as not overdue, and the company is active and not in liquidation.
• Established operating base: Incorporated in 1997, with website material describing activity since 1984 in specialty polymer products for the printed circuit board and electronics industries. Average employees increased from 33 to 35 in FY2025.
• Continued investment: Additions to intangible development costs (£84.6k) and tangible fixed assets (£93.7k) in FY2025 indicate ongoing investment, though capitalisation and amortisation policies should be reviewed.
• Clear group ownership: Electra Holdings Limited is recorded as a PSC with more than 75% of shares and voting rights and the right to appoint and remove directors, providing clear group control.

4. Due Diligence Notes

• Reconcile filing data: Confirm the latest accounts made-up date, filing history, confirmation statement dates, and director resignation dates directly with Companies House. The supplied data appears internally inconsistent.
• Obtain full accounts: Request the complete statutory accounts, including the profit and loss account, cash flow statement, and all notes, for FY2025 and any later period. The abridged accounts are insufficient for a full credit or investment assessment.
• Analyse cash-flow drivers: Establish why cash fell from £3.17m to £0.99m over three years. Review operating cash flow, capital expenditure, tax payments, dividends to the parent, intercompany transfers, and working-capital movements.
• Review working capital quality: Obtain debtor ageing, customer concentration, bad-debt history, and stock ageing/obsolescence provisions. Debtors and stocks are the largest current-asset components after cash.
• Review parent and related-party position: Assess Electra Holdings Limited’s financial position, any group cash-pooling, intercompany balances, management charges, dividends, and whether group support is relied upon.
• Check security and contingencies: Search for charges, mortgages, legal disputes, contingent liabilities, and guarantees. No such detail is provided.
• Assess sector and regulatory exposure: Specialty chemical manufacturing for PCB/electronics can be cyclical and subject to environmental, health and safety, and chemical regulatory requirements. Review customer contracts, supplier dependencies, and foreign-exchange exposure.
• Clarify director changes and governance: Obtain explanations for recent resignations and confirm board composition, secretary arrangements, and PSC register accuracy.
• Review accounting policies: Intangible development costs of £207,833 are capitalised and amortised over an estimated 10-year life; tangible asset depreciation appears low relative to additions. Confirm whether policies are conservative and consistently applied.

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