A CLASS COMPOSITES LTD

Executive Summary

A Class Composites Ltd is a newly established micro-entity with a modest but improving financial position and positive working capital. The company shows prudent management with minimal liabilities and steady net asset growth. Credit approval is recommended cautiously for small facilities, with ongoing monitoring of liquidity and business development metrics.

A CLASS COMPOSITES LTD - Analysis Report

Company Number: 13885899

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: APPROVE with reservation A Class Composites Ltd is a very young micro-entity with two years of financial history. Its financial position shows steady, albeit modest, growth in net assets from £1,121 in 2023 to £2,689 in 2024. The company maintains positive net current assets and no long-term liabilities, indicating a conservative balance sheet. The directors appear to manage the company prudently, with no audit requirement due to micro-entity status. However, the absolute scale of operations and limited asset base limit credit exposure. Approval is recommended for small, short-term credit facilities with monitoring.

2. Financial Strength: The balance sheet is simple and stable. Fixed assets have been written down to zero in 2024, which suggests no long-lived tangible assets. Current assets nearly doubled to £5,344, primarily cash and/or receivables, while current liabilities increased but remain covered by current assets. Net current assets increased from £928 to £2,690, reflecting improved liquidity. Shareholders’ funds increased proportionally, showing retained earnings support. Overall, financial strength is adequate for current size but limited for larger credit lines.

3. Cash Flow Assessment: Current assets exceed current liabilities by a factor of about 2:1, indicating healthy short-term liquidity and working capital. The micro-entity status and small size imply limited external financing and dependence on internal cash generation. The company employs only two staff, consistent with low overheads. No audit means cash flow details are limited, but net current asset growth suggests positive cash flow from operations or capital injections. No signs of liquidity stress are evident.

4. Monitoring Points:

• Track growth in turnover and profitability as these are not disclosed here but critical for debt servicing.
• Monitor any increase in current liabilities relative to assets, as working capital management is key.
• Watch for accumulation of fixed assets or long-term borrowing that could affect solvency.
• Keep an eye on directors’ conduct and PSC changes for governance risks.
• Ensure timely filing of accounts and confirmation statements to avoid compliance penalties.