Company Number: 12404220

Analysis Date: 2025-07-20 16:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALTFORM CONSTRUCTION LTD is a small, private limited company active since 2020, engaged in domestic building construction. The company shows a positive net asset position and improving working capital, indicating basic financial health. However, the absolute size of the business remains very modest with limited cash reserves and no employees, implying constrained operational scale and potential vulnerability. Credit approval is recommended with conditions including monitoring of cash flow and receivables collections to ensure ongoing serviceability of debt obligations.

2. Financial Strength:
   The balance sheet reflects net assets of £1,747 as of 31 January 2024, up from £540 the prior year. Current assets increased to £3,063 driven by cash (£1,833) and trade debtors (£1,230), while current liabilities reduced to £1,316. The company’s share capital is nominal (£100), and shareholders’ funds largely comprise retained earnings (£1,647). The improved net current assets (working capital) position of £1,747 compared to prior years signals strengthening liquidity, but the scale remains small. No fixed assets or long-term financing are noted, which limits leverage capacity.

3. Cash Flow Assessment:
   Cash at bank increased significantly from £562 in 2023 to £1,833 in 2024, indicating improved liquidity and ability to meet short-term obligations. Trade debtors decreased, which could be positive if reflecting better collections or lower sales. Current liabilities are manageable but include £752 in taxes and social security, which require timely payment. The company operates without employees, reducing salary-related cash outflows, but also limiting operational capacity. Overall, liquidity is sufficient for current operations, but tight margins and small cash buffers warrant close monitoring.

4. Monitoring Points:

• Trade debtor aging and collection effectiveness to prevent cash flow issues.
• Tax liabilities and social security payments to avoid penalties or enforcement actions.
• Maintaining or growing cash reserves to support working capital needs.
• Business growth indicators such as revenue trends and potential hiring, as lack of employees may constrain expansion.
• Any changes in director or ownership structure that might impact governance or risk profile.