Company Number: 13759816

Analysis Date: 2025-07-20 15:18 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Able Piling & Construction Limited is a small, active private limited company operating in a specialised construction niche. The company exhibits ongoing operational activity and has no overdue filings, indicating compliance discipline. However, the company is currently reporting net liabilities and a negative net asset position, signaling weak financial health. The presence of significant intra-group creditor balances backed by the parent company’s support improves going concern prospects but introduces dependency risk. Lending decisions should be conditional upon continued parental support and robust monitoring of working capital and profitability improvements.

Financial Strength:
As at 31 December 2023, the company shows:

• Net liabilities of £218,341, worsening from £93,758 net liabilities in 2022.
• Fixed assets remain stable at approximately £128k, mainly tangible assets (plant, machinery, rigs).
• Current assets increased substantially to £621k from £196k, mainly due to a rise in debtors (£507k).
• Current liabilities also increased sharply to £937k from £398k, leading to a negative net current asset position of £315k.
• Deferred tax provisions (£31k) marginally reduced.
• Shareholders’ funds are negative, reflecting accumulated losses.

The balance sheet reflects a leveraged position with significant short-term creditor obligations exceeding current assets, demonstrating liquidity pressure. The majority (£718k) of creditors are intra-group, which provides some comfort but highlights exposure to group financial policies.

Cash Flow Assessment:

• Cash at bank has improved to £90k from £46k, indicating some cash generation or funding inflows.
• However, the large increase in trade debtors (£507k) relative to cash and the high current liabilities raise concerns about cash conversion cycles and working capital management.
• Negative net current assets (-£315k) suggest the company may face difficulties meeting short-term obligations without external support.
• The directors have confirmed ongoing financial backing from the parent company, crucial for liquidity and operational continuity.

Monitoring Points:

1. Debtor collection efficiency and aging profile to ensure cash inflows meet operational and creditor demands.
2. Intra-group creditor balances and the parent company’s continuing support, including any formal guarantees or credit terms.
3. Profitability trends and cost control measures to reduce accumulated losses and improve equity position.
4. Cash flow forecasts, particularly liquidity buffers to withstand market or contract delays.
5. Any changes in management or operational strategy impacting credit risk.

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