Company Number: 13250200

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion: APPROVE
   A.P.C. Garden Services Ltd demonstrates a solid financial position for a micro-entity with consistent growth in net assets over the last three years. The company maintains positive working capital and shows no overdue filings, reflecting sound management and operational discipline. Its modest size and stable ownership structure reduce complexity and operational risk, supporting creditworthiness for typical SME lending facilities.

2. Financial Strength:
   The balance sheet shows a steady increase in net assets from £27,833 in 2021 to £72,985 in 2024, indicating retained earnings and capital growth. Fixed assets are modest but stable around £20k, appropriate for their landscaping services. Current assets increased to £67,978 with current liabilities decreasing to £16,591, resulting in a strong net current asset position of £53,616 as of March 2024. Shareholders’ funds correspond with net assets, reflecting no off-balance sheet liabilities or hidden debt.

3. Cash Flow Assessment:
   The company’s liquidity appears sound, with current assets comfortably covering current liabilities more than three times over, which suggests a healthy working capital buffer. The increase in prepayments and accrued income (from £425 to £2,229) may indicate some advance receipts or prepaid expenses, which can be positive if effectively managed. The growing net current assets signal improved cash conversion and operational cash flow generation. No audit exemption is claimed, but as a micro-entity, this is standard and does not detract from the financial transparency.

4. Monitoring Points:

• Monitor receivables and payables turnover ratios to ensure working capital remains robust, especially given the increase in accrued income.
• Watch for any significant changes in liabilities or asset impairments that could affect net assets.
• Review employee count and payroll costs as expansion from 3 to 5 employees may impact cash flow.
• Keep an eye on market conditions for landscaping services which may impact revenues and margins.
• Ensure continued timely filing of accounts and confirmation statements to avoid compliance risks.