BUSHWILLOW HOMES (EWHURST) LIMITED

Executive Summary

BUSHWILLOW HOMES (EWHURST) LIMITED is a newly formed micro-entity in building project development with strong short-term liquidity but marginally negative net assets due to long-term creditors. The company's limited operating history and reliance on creditor funding warrant conditional credit approval, with close monitoring of profitability, cash flow, and balance sheet strengthening in the coming year.

BUSHWILLOW HOMES (EWHURST) LIMITED - Analysis Report

Company Number: 14837111

Analysis Date: 2025-07-29 15:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BUSHWILLOW HOMES (EWHURST) LIMITED is a newly incorporated micro-entity in the property development sector with one financial year completed. The company shows a marginally negative net asset position (£-508), mainly due to long-term creditors slightly exceeding current assets, but maintains strong net current assets (£1.94M), indicating short-term liquidity. The directors include a Chartered Accountant, suggesting competent financial stewardship. However, the company is in its infancy with no trading history beyond one year and no employees, which limits the ability to assess ongoing profitability and debt servicing capability. Credit approval should be conditional on monitoring trading performance and cash flow generation over the next 12 months.

2. Financial Strength:
   The balance sheet reflects current assets of £1.95M against current liabilities of £3,430, delivering a strong net working capital position of approximately £1.94M. However, the company reports creditors due after one year at £1.94M, resulting in slightly negative net assets of £-508. This indicates reliance on long-term creditor funding or shareholder loans, common in start-ups. The absence of fixed assets or equity cushions suggests the company is in early-stage capital formation. The financial structure is fragile but not unusual for a first-year micro-entity property developer.

3. Cash Flow Assessment:
   The company’s strong net current asset position signals sufficient short-term liquidity to meet immediate obligations. However, with no employees and presumably limited operating activity to date, cash inflows are likely dependent on shareholder funding or creditor advances. The lack of an audit and limited disclosure on cash flow statements restricts visibility on operational cash generation. Continued monitoring of cash conversion cycle and debtor collections upon commencement of trading is recommended to confirm sustainable liquidity.

4. Monitoring Points:

• Profitability trends and revenue growth once trading is established.
• Changes in net asset position to ensure the company moves into positive equity territory.
• Management of long-term creditor balances and timing of repayments.
• Cash flow from operations to assess ongoing liquidity independent of shareholder funding.
• Directors’ compliance with filing deadlines and transparency in financial reporting.