C ARMSTRONG CARPENTRY LTD

Executive Summary

C Armstrong Carpentry Ltd demonstrates a stable balance sheet position for a recently incorporated micro-entity, with positive net assets and working capital supporting moderate credit limits. Limited financial history and lack of profit/loss data warrant conditional approval with ongoing monitoring of cash flow and profitability. Management’s compliance with filing requirements and maintenance of liquidity are key to future creditworthiness.

C ARMSTRONG CARPENTRY LTD - Analysis Report

Company Number: 14812565

Analysis Date: 2025-07-29 14:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   C Armstrong Carpentry Ltd shows positive net current assets and net assets over the last two reported years, indicating a sound short-term liquidity position and an equity base. However, as a micro-entity incorporated in 2023, with limited financial history and no profit and loss details filed, the credit risk is moderate. Approval is recommended for modest credit facilities with conditions including ongoing financial monitoring and updated trading performance reports.

2. Financial Strength:
   The company’s net assets decreased from £10,431 at incorporation in 2023 to £8,143 in 2025, reflecting some erosion of equity but still maintaining positive shareholder funds. Current assets at £11,511 comfortably exceed current liabilities of £3,368, producing a net working capital of £8,143, which is healthy for a micro business. The balance sheet shows no long-term liabilities, which limits financial risk. The company’s small scale and micro-entity accounting regime mean financial data is limited in detail.

3. Cash Flow Assessment:
   Positive net current assets indicate the company is managing working capital adequately, with sufficient short-term assets to cover immediate liabilities. The stable average employee count of 2 suggests a low fixed-cost base. However, absence of cash flow statements and profit/loss accounts limits comprehensive assessment of cash generation and debt servicing capacity. It is advisable to request management accounts periodically to verify cash flow health.

4. Monitoring Points:

• Profitability and cash flow trends once profit and loss accounts are available.
• Changes in creditor and debtor balances to detect liquidity stress.
• Any increase in liabilities or off-balance sheet commitments.
• Directors’ adherence to filing deadlines and regulatory compliance.
• Business volume growth or contraction in the specialised construction sector (SIC 43999).