Company Number: 13171236

Analysis Date: 2025-07-29 17:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CBW COMMS LTD demonstrates a positive net asset position and improving shareholders’ funds, indicating modest financial strength for a micro-entity in the telecommunications sector. However, the company has relatively low fixed assets and moderate long-term liabilities, which suggest limited asset backing. Given the small scale and minimal share capital (£2), the credit facility should be cautiously sized and subject to ongoing monitoring, especially considering the company’s young age (incorporated 2021) and limited trading history. Approval is recommended with conditions requiring updated financials and cash flow reviews before any significant credit increase.

2. Financial Strength:

• Net assets increased from £28,633 in 2023 to £33,901 in 2024, showing growth in equity and retained earnings.
• Total assets less current liabilities are stable around £48-49k, but fixed assets declined from £26,019 (2023) to £19,964 (2024), possibly due to asset disposals or depreciation.
• Current assets have more than doubled from £23,863 to £55,239, improving liquidity, but current liabilities also increased sharply from £472 to £26,834, which raises questions about short-term obligations.
• Long-term liabilities reduced from £15,833 to £10,675, indicating some debt repayment or restructuring.
  Overall, the balance sheet shows a net positive position but with increased short-term liabilities that require scrutiny.

3. Cash Flow Assessment:

• Net current assets improved from £23,391 to £28,405, reflecting a stronger working capital position.
• The large increase in current liabilities, mainly creditors due within one year, from £472 to £26,834, could indicate stretched payment terms or increased supplier credit.
• The company employs only 2 staff, suggesting low payroll burden and potentially stable operating expenses.
• The rise in current assets, particularly cash or receivables, is positive but needs confirmation of quality and collection terms.
  Liquidity appears adequate but tight short-term creditor balances necessitate monitoring to avoid cash flow strain.

4. Monitoring Points:

• Track evolution of current liabilities and creditor aging to identify any payment delays or liquidity issues.
• Review turnover and profitability trends to confirm sustainable cash inflows supporting debt servicing.
• Assess any changes to long-term debt and provisions that could impact financial stability.
• Monitor directors’ actions and any changes in ownership or control that may affect governance or credit risk.
• Confirm timely filing of accounts and returns to ensure compliance and transparency.