AG ROOFING AND CLADDING LTD

Executive Summary

AG Roofing and Cladding Ltd shows solid financial improvement and adequate liquidity to support credit facilities at a micro-enterprise level. The company’s growing net assets and strong working capital indicate good financial stewardship and operational health. Caution is advised regarding long-term liabilities, with ongoing monitoring recommended to mitigate refinancing or cash flow risks.

AG ROOFING AND CLADDING LTD - Analysis Report

Company Number: SC663043

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: APPROVE with conditions
   AG Roofing and Cladding Ltd demonstrates improving financial strength and adequate working capital to support its operations and debt servicing capacity. The company is micro-sized with a single director and employee, indicating a small but focused operation in the roofing sector. Its net assets and shareholders’ funds have grown substantially over the last three years, reflecting retained earnings and prudent management. However, the presence of long-term creditors (£95,629 in 2024) warrants monitoring the company’s ability to meet these obligations as they mature. Given the company’s small size and limited staff, the credit facility should be structured conservatively with regular reviews.

2. Financial Strength:
   The balance sheet shows a steady increase in net assets from £23,092 in 2021 to £169,924 in 2024, indicative of retained profits and capital accumulation. Fixed assets have remained relatively stable (£60k range), suggesting moderate investment in equipment or property essential for roofing activities. Current assets have more than doubled from £131k to £281k, largely improving liquidity. The company’s current liabilities increased to £76k in 2024 but are well covered by current assets, resulting in strong net current assets of £205k. The overall gearing appears manageable given the asset base, though the sizeable long-term liabilities should be scrutinized.

3. Cash Flow Assessment:
   The company's liquidity position is healthy with net current assets comfortably positive (£205k in 2024), supporting short-term obligations and working capital needs. The increase in current assets, particularly cash or receivables, suggests good cash inflows or effective credit control. The micro-entity size and single employee imply limited overheads, which reduces cash outflow pressures. However, the notes do not provide detailed cash flow statements, so continuous monitoring of actual cash flows and creditor payments is advised, especially to ensure timely servicing of long-term creditors.

4. Monitoring Points:

• Long-term creditor balances and repayment schedule to assess refinancing risk or cash flow strain.
• Consistency in profitability and retention of earnings to sustain net asset growth.
• Maintenance of positive working capital and liquidity ratios to ensure operational resilience.
• Any changes in director or operational scale which could impact management strength or business continuity.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance and transparency.