AWNINGS & VERANDAS CONSULTANTS LTD

Executive Summary

Awnings & Verandas Consultants Ltd presents a stable but nascent financial profile with positive net assets and sound liquidity typical of a micro-entity in its first year. Credit can be approved with a cautious approach due to limited trading history and scale. Ongoing monitoring of financial performance and liquidity metrics is recommended to manage risk effectively.

AWNINGS & VERANDAS CONSULTANTS LTD - Analysis Report

Company Number: 15006975

Analysis Date: 2025-07-29 19:03 UTC

1. Credit Opinion: APPROVE with caution. Awnings & Verandas Consultants Ltd is a newly incorporated micro-entity with a positive net asset position and modest working capital. The company demonstrates sound initial financial management with no overdue filings and a sole director who holds full control. However, the limited trading history and small scale mean credit exposure should be moderate and contingent on ongoing performance and cash flow monitoring.

2. Financial Strength: The company’s balance sheet as at 31 July 2024 shows fixed assets of £1,179 and current assets of £12,744 against current liabilities of £6,070, resulting in net current assets of £6,674 and net assets of £6,973. Shareholders funds equal net assets, indicating no long-term debt. The positive net asset base and working capital reflect a stable financial foundation typical for a micro-entity.

3. Cash Flow Assessment: Current assets significantly exceed current liabilities, implying adequate liquidity to meet short-term obligations. The net current assets of £6,674 provide a reasonable cushion for working capital needs. Given the company has only one employee (the director), operating expenses are likely low, supporting cash flow stability. However, no detailed profit & loss or cash flow statement is available, so future cash generation capacity remains uncertain.

4. Monitoring Points:

• Track subsequent annual accounts for revenue growth and profitability trends.
• Monitor any increase in liabilities that could pressure liquidity.
• Confirm timely filing of statutory returns continues.
• Watch for any change in ownership/control or director status.
• Assess impact of market conditions on their non-specialised wholesale trade sector (SIC 46900).
• Review creditworthiness if credit limits are to be increased over time.