BARNARD BUILDING AND PLUMBING LTD

Executive Summary

Barnard Building and Plumbing Ltd is a start-up micro company with a fragile financial position characterized by negative working capital and minimal net assets. The company’s current liquidity constraints and limited operating history present high credit risk. Credit approval is not recommended at this stage without significant mitigating factors or external support.

BARNARD BUILDING AND PLUMBING LTD - Analysis Report

Company Number: 15267256

Analysis Date: 2025-07-29 17:08 UTC

1. Credit Opinion: DECLINE

Barnard Building and Plumbing Ltd is a newly incorporated micro-entity with limited operating history, having commenced trading in November 2023. The latest financial statements as of November 2024 reveal a weak liquidity position with net current liabilities of £18,891, indicating that current liabilities exceed current assets. This negative working capital raises concerns about its ability to meet short-term obligations reliably. The company’s total net assets of £9,656 are minimal, reflecting a very thin capital base. Given the lack of historical financial performance, limited asset base, and negative working capital, the company currently does not demonstrate sufficient financial strength or cash flow stability to support additional credit without stringent conditions.

2. Financial Strength:

The balance sheet shows fixed assets of £28,547, which are modest and likely represent essential equipment for the plumbing and building trade. Current assets stand at £25,470, primarily cash and receivables, but these are outweighed by current liabilities of £44,361, resulting in net current liabilities. The company’s shareholders’ funds of £9,656 reflect the initial capital investment and retained earnings, which are minimal. The micro size and negative working capital position suggest that the company is financially fragile and highly dependent on ongoing cash inflows to maintain operations. There is no indication of long-term debt or other liabilities, which limits leverage but also reflects limited capitalization.

3. Cash Flow Assessment:

The negative net current assets imply an ongoing liquidity strain. With liabilities due within one year exceeding current assets, the company may face difficulty in meeting short-term creditor commitments without additional capital injections or improved cash collection. The average number of employees is only one, indicating a very small operation with potentially low overheads, but also limited operational scale and cash generation capacity. Without detailed cash flow statements, it is difficult to confirm actual cash inflows, but the working capital deficit is a red flag for liquidity risk.

4. Monitoring Points:

• Working Capital: Track monthly current asset and liability balances to ensure the company improves or at least stabilizes its net current asset position.
• Cash Flow: Monitor actual cash inflows from contracts and customer payments to assess real-time liquidity health.
• Profitability Trends: As the company matures, review future profit and loss statements to evaluate the ability to generate sustainable earnings.
• Director Conduct and Ownership: Mr. Robert Barnard holds 100% control and is actively involved; any changes in management or control should be noted.
• Filing Compliance: The company is current on filings, continue monitoring timely accounts and confirmation statements.