Company Number: 12837452

Analysis Date: 2025-07-19 12:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AG Building & Landscape Design Ltd demonstrates improving financial health with positive net current assets and increasing shareholders’ funds over the last two years. However, trade debtors have significantly decreased in 2024 compared to 2023, and corporation tax liabilities have doubled, which warrants ongoing monitoring. The company’s low share capital and reliance on directors’ advances suggest some exposure; therefore, credit approval should be conditional on continued timely payments and updated financial information.

2. Financial Strength:
   The company’s balance sheet shows tangible fixed assets of approximately £9,145 and net assets of £10,169 as of August 2024, an improvement from £5,419 in 2023. Shareholders’ funds have nearly doubled, reflecting retained earnings growth. Current liabilities (£18,398) slightly exceed trade creditors but are covered by current assets (£21,160), giving a modest positive net working capital of £2,762. The rise in corporation tax to £11,505 is a notable liability, but the company maintains a solid tangible asset base and positive equity.

3. Cash Flow Assessment:
   Cash on hand increased substantially to £18,007 in 2024 from £9,427 in 2021, indicating improved liquidity. Debtors have dropped markedly from £9,319 in 2023 to £3,153 in 2024, improving cash conversion cycles but potentially signaling lower sales or accelerated collection efforts. The company has no bank loans or overdrafts, reducing financial risk. Directors’ advances show minor net funding from directors, which should be monitored.

4. Monitoring Points:

• Track trade debtor levels and aging to ensure consistent cash inflow.
• Monitor corporation tax and other liabilities for timely settlement.
• Review future financial statements for continued profitability and cash generation.
• Watch for any changes in directors’ advances or external borrowings.
• Confirm business continues to maintain or grow tangible assets and equity.