ABROOFINGCLADDING LTD

Executive Summary

ABROOFINGCLADDING LTD is a small but financially stable roofing contractor with a solid and improving balance sheet and strong liquidity. The company’s financial trajectory shows growth in net assets and working capital, supporting credit approval for modest facilities. Continued monitoring of working capital and sector conditions is advisable to maintain credit quality.

ABROOFINGCLADDING LTD - Analysis Report

Company Number: SC742250

Analysis Date: 2025-07-29 15:55 UTC

1. Credit Opinion: APPROVE – ABROOFINGCLADDING LTD demonstrates a strong and improving financial position for a micro-entity in the roofing sector. The company shows consistent growth in net assets and working capital, indicating an increasing ability to meet short-term and long-term obligations. There are no signs of financial distress, negative cash flows, or overdue filings. Management appears to maintain sound financial stewardship with timely accounts and returns submissions.

2. Financial Strength: The balance sheet reflects steady improvement. Net assets increased from £11,682 in 2022 to £22,983 in 2024, nearly doubling over two years. Fixed assets are modest (£4,289) relative to current assets (£45,268), suggesting a lean asset base appropriate for a service-oriented business. The company holds a healthy net current asset position of £24,062, which supports operational liquidity. Provisions and accruals remain low and stable, indicating limited contingent liabilities or deferred expenses.

3. Cash Flow Assessment: Current assets are predominantly liquid, with no off-balance sheet liabilities disclosed. The net current assets growth from £9,846 in 2023 to £24,062 in 2024 signals improved working capital management. The company’s ability to cover current liabilities more than twice over reduces liquidity risk. With an average of one employee, operational overhead is low, supporting positive cash flow generation potential.

4. Monitoring Points:

• Maintain oversight on continued working capital levels and timely collection of receivables.
• Monitor any changes in provisions that could signal emerging liabilities.
• Watch for business volume trends in the roofing sector as external economic pressures may impact revenues.
• Ensure ongoing compliance with filing deadlines to avoid regulatory risk.