CALI STEEL & CLADDING LIMITED

Executive Summary

Cali Steel & Cladding Limited shows a positive financial trajectory with steady asset growth, healthy liquidity, and manageable liabilities for its size and age. The company appears capable of meeting current obligations and servicing credit facilities, though exposure should be limited given its micro-enterprise scale and limited operational breadth. Ongoing monitoring of debtor management and profitability will be critical to maintaining credit quality.

CALI STEEL & CLADDING LIMITED - Analysis Report

Company Number: 13599109

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: APPROVE with conditions
   Cali Steel & Cladding Limited demonstrates steady growth and a healthy balance sheet for a relatively young company (incorporated 2021). The net assets and shareholders’ funds have increased consistently over the last three years, indicating sound financial stewardship. Current liabilities are well covered by current assets, and cash balances have improved significantly. However, the company is small with only one employee and limited fixed assets, so credit exposure should be capped and monitored carefully. Approval is recommended with conditions on exposure limits and regular review of financial updates.

2. Financial Strength:

• Net assets have grown from £61.4k in 2021 to £118.2k in 2024, indicating retained earnings accumulation and capital solidity.
• Tangible fixed assets stand at £47.8k, showing modest investment in plant and machinery with appropriate depreciation policies applied.
• Net current assets of £83.6k versus current liabilities of £38.2k reflects a comfortable working capital position and short-term solvency.
• Provisions for liabilities are modest (£13.1k), suggesting limited contingent risks.
  Overall, the balance sheet shows a sound capital structure typical of a micro/small enterprise with improving financial footing.

3. Cash Flow Assessment:

• Cash at bank has increased substantially from £6.5k in 2021 to £57.7k in 2024, indicating improved liquidity and internal cash generation or capital injection.
• Trade debtors are moderate at £28.7k with other debtors at £35.3k, which should be monitored for collectability to avoid cash flow strain.
• Current liabilities, including trade creditors and tax/social security, are manageable and well covered by liquid assets.
• The company’s net current asset position and rising cash balances suggest it is capable of meeting short-term obligations without undue stress.

4. Monitoring Points:

• Debtor collection efficiency: The company’s debtors remain a significant portion of current assets; aging analysis and timely collections should be reviewed regularly.
• Profitability trends: While accounts do not include an income statement, monitoring future filings for consistent profitability is essential.
• Cash flow from operations: Track cash conversion cycle closely given the small scale and limited employee base.
• Provisions and contingent liabilities: Keep watch for any increases that may indicate emerging risks.
• Business growth and operational scale: As the company expands, asset investment and staffing changes should be assessed for impact on credit risk.