Company Number: 02084372

Analysis Date: 2026-05-27 07:34 UTC

1. Credit Opinion: APPROVE
   Banbury Windows Limited demonstrates a stable financial position as evidenced by its growing net current assets and shareholders' funds over recent years. The company operates in manufacturing of plastic products, a sector with moderate risk but stable demand. The absence of overdue filings and longevity since 1986 supports operational stability. Although the company is exempt from audit, which limits insight into profitability and cash flow dynamics from the filings, the director's report shows no indications of material uncertainty beyond normal business risks. Management appears stable, with longstanding directors and a steady number of employees. Overall, the company shows capacity to meet its short-term obligations and maintain operations, justifying credit approval for standard facilities.

2. Financial Strength:

• Shareholders' funds have increased from £292,681 in 2018 to £469,556 in 2025, indicating improved net worth and retained earnings growth.
• Net current assets improved from £399,967 in 2022 to £469,457 in 2025, reflecting strengthened liquidity position.
• Current assets are predominantly composed of receivables and inventory, with cash balances more modest at £139,114, down from prior years where cash was up to £241,841 in 2024.
• The company has minimal fixed assets and low investment balance (£99), highlighting a working capital intensive business model.
• Current liabilities have increased from £439,738 in 2024 to £506,927 in 2025 but are comfortably covered by current assets.

3. Cash Flow Assessment:

• Cash position has decreased by over 40% from £241,841 in 2024 to £139,114 in 2025, which may indicate increased working capital deployment or cash usage.
• Receivables significantly increased by over 50% in one year to £483,092, compared to £312,147 previously, suggesting potential lengthening of credit terms or slower collections.
• Inventory stands at £354,178 in 2025, slightly up from £345,200, hinting at stable stock levels relative to sales.
• Net working capital remains positive and improving, supporting short-term liquidity though the pronounced increase in receivables requires monitoring to ensure effective cash collection.
• Overall, the company appears to have adequate short-term liquidity to cover current liabilities, but efficiency in receivables turnover should be reviewed.

4. Monitoring Points:

• Receivables aging and collection efficiency: The marked increase in trade and other receivables could strain liquidity if not collected timely.
• Cash flow trends: Continued reduction in cash balances may expose the company to liquidity risk if receivables convert slowly to cash.
• Operating lease commitments: Future commitments (£61,112) should be tracked in context of operational cash flow.
• Profitability metrics: Limited disclosure on P&L restricts full profitability assessment; future accounts should be reviewed when published.
• Director and related party transactions: Monitor for any significant related party balances that may impact company cash flow or credit risk.