Company Number: 15208947

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: APPROVE
   AKA Contract Flooring Ltd is a newly incorporated but active private limited company operating in the building completion and flooring sector. Their first set of filed accounts shows a modest but positive net asset position and sufficient working capital, indicating the capability to meet short-term obligations. The directors are experienced individuals without any noted adverse conduct, and the company has no overdue filings or signs of distress. Given the current financials and absence of red flags, the company should be able to service typical credit facilities for its size and stage, though credit lines should initially be moderate due to its short trading history.

2. Financial Strength:
   The balance sheet as at 31 March 2025 reveals total net assets of £64,932, comprised mainly of net current assets of £56,188 and tangible fixed assets of £8,744. The company holds £66,876 in cash, which is a strong liquidity buffer relative to current liabilities of £29,915. The low level of creditors and positive retained earnings suggest sound equity backing. However, the company is still small and early-stage, with only 1 employee, which limits the scale but also caps risk exposure. The absence of long-term liabilities further supports a conservative financial structure.

3. Cash Flow Assessment:
   Cash on hand significantly exceeds current liabilities, providing a comfortable liquidity position and a good working capital cycle for operating needs. Debtors stand at £19,227, primarily trade debtors, indicating ongoing revenue generation. The company’s ability to maintain positive net current assets and cash balances demonstrates effective cash flow management to date. The director’s advances are minimal and were repaid within nine months, showing no reliance on director funding for liquidity. Operating lease commitments are low (£1,885 within one year), minimizing fixed overhead risk.

4. Monitoring Points:

• Track turnover growth and profitability once future accounts are filed to ensure sustainable cash flow generation.
• Monitor debtor aging and creditor payment terms to avoid liquidity strain as the business scales.
• Watch for any changes in director status or adverse conduct that could affect governance and creditworthiness.
• Review subsequent filings for any emerging liabilities or changes in working capital dynamics.
• Evaluate the impact of economic factors on building and flooring sector demand, which could influence financial stability.