Company Number: 13111819

Analysis Date: 2025-07-20 14:41 UTC

1. Credit Opinion: APPROVE with caution
   OMS Electrical Ltd demonstrates a stable financial position with positive net assets and improving working capital over recent years. The company operates within the micro-entity category, maintaining manageable liabilities relative to assets. However, as a very small business with a single director and minimal staff, its credit capacity is limited. Approval is recommended for modest credit facilities contingent on ongoing monitoring of liquidity and timely filings.

2. Financial Strength:
   The balance sheet shows net assets increasing from £579 in 2022 to £6,672 in 2025, indicating a strengthening equity base. Fixed assets remain modest and stable around £3,000. Current assets have decreased from £18,998 in 2021 to £8,350 in 2025, but current liabilities have reduced more significantly from £16,611 (2021) to £4,620 (2025), improving net current assets to £3,730. The company shows a healthy working capital position and no significant debt concerns. Shareholders’ funds have grown steadily, reflecting retained earnings or capital injections.

3. Cash Flow Assessment:
   Current assets primarily include cash and receivables sufficient to cover current liabilities, with net current assets positive at £3,730 for 2025. The reduction in current liabilities suggests improved payment discipline or debt management. However, limited information on cash flow from operations is available, and with only one employee (the director), cash flow volatility could be a risk if revenue fluctuates. Liquidity appears adequate for day-to-day operations but should be closely monitored.

4. Monitoring Points:

• Maintain up-to-date filings and compliance with Companies House deadlines to avoid penalties.
• Monitor liquidity trends, particularly current assets vs. current liabilities, to detect early signs of cash flow strain.
• Watch for any significant fluctuations in working capital or delayed payments to suppliers or creditors.
• Track any changes in director or management structure that could affect operational continuity.
• Observe business growth or contraction in the electrical installation sector impacting OMS Electrical Ltd’s revenue streams.