Company Number: 14121475

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. 4 JOINERY LIMITED is an active micro-entity in the joinery installation and manufacture sector, with modest asset base and equity. The company shows positive net assets but a significant deterioration in net current assets year-over-year, turning negative in the latest financial year. The absence of current assets as of August 2024 is a concern regarding immediate liquidity and working capital management. The owner and managing director, Mr Vladimir Castravet, holds full control, which suggests centralized decision-making but also concentration risk. Given the company’s micro size, relatively new incorporation (2022), and financial constraints, credit should be extended cautiously with limits and monitoring.

2. Financial Strength: The balance sheet shows fixed assets increased from £21.7k in May 2023 to £37.0k in August 2024, indicating some investment in property or equipment. However, current assets fell sharply from £8.8k to zero, while current liabilities increased from £26.4k to £30.7k. This resulted in net current liabilities of £30.7k (previously a positive net current asset position of £17.6k), signaling working capital strain. The company has a small amount of long-term liabilities (£610). Net assets remain positive at £5.7k but are only marginally above zero and reflect limited equity cushion. Overall, the company’s financial strength is weak for lending beyond small credit lines.

3. Cash Flow Assessment: The complete disappearance of current assets suggests cash or receivable depletion, raising liquidity risk. The company may face challenges meeting short-term obligations without fresh cash inflows or additional capital injection. Average employee count remains stable at 2, which suggests low overhead, but working capital management appears poor. The negative net current assets indicate potential reliance on supplier credit or external funding to finance operations, which may impact repayment ability.

4. Monitoring Points:

• Track subsequent filings for improvement or further deterioration in current assets and liabilities.
• Monitor cash flow statements or bank transaction data if available to assess liquidity trends.
• Watch for any director loans or capital injections from the controlling director.
• Keep an eye on overdue payments to suppliers or any late filings that may indicate operational stress.
• Review any changes in business scale or ownership that might affect credit risk.