ADRIAN SMITH CARPENTRY LIMITED

Executive Summary

Adrian Smith Carpentry Limited is a micro-entity with a critically weak balance sheet and negligible working capital. The company’s financial position exhibits no capacity to service debt or absorb financial shocks, leading to a credit recommendation of decline. Ongoing monitoring of liquidity and equity levels is essential if the company seeks future credit consideration.

ADRIAN SMITH CARPENTRY LIMITED - Analysis Report

Company Number: 12809725

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: DECLINE
   Adrian Smith Carpentry Limited is a micro-entity with minimal net assets (£1 as of 2023) and an extremely thin working capital position (net current assets of £1). The company shows stagnant financial metrics with net assets declining from £61 in 2022 to £1 in 2023, indicating no tangible buffer to absorb financial stress. There is no indication of profitability or cash reserves to support debt servicing. Given the very limited equity base and lack of financial strength, the company is not currently capable of reliably servicing additional credit facilities.

2. Financial Strength:
   The balance sheet is extremely weak. Total net assets have eroded to just £1, down from £61 the prior year, reflecting either losses or withdrawals. Current assets and liabilities are nearly equal (£4,611 vs £4,610), indicating a fragile liquidity position with no margin for unexpected liabilities. The company is reliant on a single director and employee, suggesting limited operational scale and resilience. The absence of fixed assets or retained earnings further weakens financial stability.

3. Cash Flow Assessment:
   Working capital is effectively zero, with current liabilities almost matching current assets. The company’s cash flow is likely minimal given the small scale and low asset base. There are no indications of cash reserves or free cash flow to meet obligations beyond immediate liabilities. This raises concerns on liquidity and the ability to meet short-term commitments without external support.

4. Monitoring Points:

• Track changes in net current assets and net assets to detect any further erosion of equity.
• Monitor cash flow statements if available to assess liquidity improvements or deterioration.
• Watch for timely filing of accounts and confirmation statements as a proxy for management diligence.
• Review any changes in ownership or director appointments that might affect governance.
• Assess any incoming financial data that shows operational scale-up or profitability improvement.