ABBEX BUILDING SOLUTIONS LIMITED

Executive Summary

Abbex Building Solutions Limited is a newly formed roofing and building finishing company with modest net assets and a slight working capital deficit. The company’s short trading history and limited financial disclosures warrant cautious credit extension, conditioned on close monitoring of liquidity and operational cash flow development. While currently stable, the tight balance sheet implies careful working capital management is essential to support future credit facilities.

ABBEX BUILDING SOLUTIONS LIMITED - Analysis Report

Company Number: 14862824

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Abbex Building Solutions Limited is a very recently incorporated roofing and building finishing company with limited operating history (first financial period ended May 2024). The company shows a modest net asset base (£1,544) and a small negative net working capital position (-£2,687). While the business has some tangible fixed assets (£5,231 net book value) and cash resources (£15,822), current liabilities slightly exceed current assets, indicating potential short-term liquidity pressure. The directors have not disclosed turnover or profit figures, limiting assessment of operational cash flow generation. The absence of contingent liabilities and capital commitments is positive. Given the company’s infancy and tight working capital, credit extension should be conditional on monitoring liquidity and operational cash flow development.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset position supported by tangible fixed assets and shareholders’ funds of £1,544. The company has invested in plant and machinery and motor vehicles totaling £6,475 gross, with depreciation charged accordingly. However, net current liabilities of £2,687 indicate working capital constraints, as current liabilities of £18,509 exceed current assets (cash only, no disclosed receivables or inventory). The presence of a deferred tax provision of £1,000 suggests some taxable temporary differences but no material tax risk. Overall, the financial base is fragile but not alarming for a start-up within this sector.

3. Cash Flow Assessment:
   Cash at bank of £15,822 provides some cushion, but the negative net current assets point to a potential mismatch in short-term obligations versus liquid resources. No income statement or cash flow statement is available to measure operating cash inflows or outflows, making liquidity forecasting uncertain. The company’s ability to meet current liabilities as they fall due will depend on timely receipt of trade debtors and effective management of payables. The small employee base (average 2 employees) and small scale may limit cash burn, but working capital management will be critical in the near term.

4. Monitoring Points:

• Track liquidity ratios and ensure current liabilities remain manageable relative to cash and receivables.
• Monitor turnover and profitability trends once reported to assess sustainability and debt servicing capacity.
• Review cash flow statements for evidence of positive operating cash generation.
• Watch for any overdue filings or changes in director status that could affect governance or credit risk.
• Monitor any growth in asset base or working capital improvements as the company scales.