AJB TILE AND STONE LTD

Executive Summary

AJB TILE AND STONE LTD is a very small construction installation company showing a modest recovery in net assets and liquidity in the latest financial year. While the balance sheet remains fragile with minimal capital and no fixed assets, the improved net current asset position reduces immediate credit risk. Credit facilities could be extended on a conditional basis with close monitoring of cash flow and financial filings to ensure ongoing business viability.

AJB TILE AND STONE LTD - Analysis Report

Company Number: 13059138

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AJB TILE AND STONE LTD is a micro-entity operating in the construction installation sector with a single director and one employee. The company shows a modest but positive net asset position as of 31 December 2023 (£789), recovering from negative net assets the previous year (-£388). The improvement in net current assets and net assets indicates some financial stabilization. However, absolute figures remain small and the balance sheet is fragile with limited capital and minimal fixed assets. The company’s ability to service credit facilities depends heavily on maintaining positive cash flows and careful working capital management. Lending could be considered with limits aligned to the company’s size and under the condition of ongoing financial monitoring.

2. Financial Strength:
   The company’s balance sheet reflects a very small scale operation. Fixed assets are nil as of 2023, indicating no tangible asset base to secure loans. Current assets (mainly cash and receivables) increased to £2,014 in 2023 from £944 the previous year, while current liabilities decreased to £1,225 from £1,332, resulting in a net current asset position of £789. Shareholders’ funds are modest but positive (£789), recovering from a net liability position in 2022. Overall, the financial strength is weak due to low equity and minimal asset backing, but the trend is slightly positive.

3. Cash Flow Assessment:
   With one employee and a micro-entity status, the company's operational scale is minimal. The increase in current assets and reduction in current liabilities suggest improved liquidity and working capital management compared to last year. However, absolute cash and liquid resources remain very limited. The company’s ability to meet short-term obligations appears manageable but tight. No detailed cash flow statements are available, so assumptions rely on balance sheet movements. The company should maintain strict controls over receivables and payables to avoid liquidity strain.

4. Monitoring Points:

• Continued improvement or maintenance of positive net current assets and net assets.
• Timely filing of accounts and confirmation statements to avoid penalties and maintain transparency.
• Cash flow trends, especially receivables collection and creditor payments.
• Any increase in fixed assets or capital injection that might strengthen the balance sheet.
• Business growth indicators such as turnover increase or client diversification.
• Director conduct and company status remain stable.