A-BAL DEVELOPERS LIMITED

Executive Summary

A-Bal Developers Limited is a newly established micro-entity in the construction sector showing early signs of financial improvement with positive working capital and increasing net assets. The company’s limited trading history and small scale warrant a conditional credit approval with close monitoring of liquidity and operational performance. Ongoing oversight of cash flow and management stability is recommended to mitigate risks inherent in its early development phase.

A-BAL DEVELOPERS LIMITED - Analysis Report

Company Number: 13885842

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   A-Bal Developers Limited is a very recently incorporated micro-entity operating in the construction and property development sector. The company shows a positive turnaround in net current assets and net assets between 2023 and 2024, indicating improving financial health. However, the small scale of operations, limited financial history, and reliance on a single director/owner necessitate cautious credit extension with conditions such as regular financial monitoring and possibly limits on credit exposure. The company’s ability to service debt looks plausible in the short term but unproven over longer horizons due to limited trading history.

2. Financial Strength:
   The balance sheet reveals a modest but improving net asset position: net assets increased from £5,578 in 2023 to £15,923 in 2024, driven mainly by improved working capital management. Fixed assets decreased slightly, while current assets increased notably, resulting in positive net current assets of £4,583 in 2024 compared to a negative £8,555 the prior year. Long-term liabilities have slightly decreased from £8,642 to £7,336. Shareholders' funds mirror net assets, reflecting a fully equity-financed position with no indication of external equity injections beyond the initial capital. Overall, the financial structure appears stable but thinly capitalized, typical of a micro company in early growth.

3. Cash Flow Assessment:
   Current liabilities slightly decreased but remain close to the level of current assets, producing a working capital cushion that has moved from a deficit to a modest surplus. The presence of prepayments and accrued income (£5,308) reflects some forward-looking expenditures or income recognition. The company’s liquidity is adequate for day-to-day operations but limited in scope, implying sensitivity to cash flow disruptions. The absence of an audit and limited detail on cash flow statements restricts deeper analysis, so monitoring actual cash inflows and outflows is essential.

4. Monitoring Points:

• Continued improvement in net current assets and net asset base to build resilience.
• Cash flow stability, especially cash conversion cycles, given the construction sector’s typical payment delays.
• Timely filing of accounts and confirmation statements to avoid compliance risks.
• Dependence on a single director/shareholder; any changes in management or ownership concentration could impact governance and credit risk.
• Exposure to sector-specific risks such as construction market downturns or project delays.