Company Number: 14678468

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CC Cabling Ltd is a recently incorporated private limited company operating in the construction of utility projects for electricity and telecommunications. The company has shown rapid growth in net assets and working capital within two years, indicating positive development. However, the presence of finance lease obligations totaling £25,000 and current liabilities that are substantial relative to current assets suggest some leverage and liquidity risks. Given the limited trading history and reliance on hire purchase financing, credit approval is recommended with conditions such as monitoring cash flow closely and requiring updated financials before any increase in credit limits.

2. Financial Strength:

• The balance sheet has strengthened significantly from a net asset base of £77 at incorporation to £16,141 at the latest year-end (28 Feb 2025).
• Fixed assets of £22,430 are mainly motor vehicles acquired via finance lease, indicating capital investment to support operations.
• Shareholders’ funds have improved to £16,141, reflecting accumulated profits and retained earnings of £16,041.
• The company is small in scale but growing; the total assets less current liabilities improved to £33,641 from a marginal £77 previously.
• The gearing effect from finance leases (total £25,000 repayable over next 5 years) introduces moderate long-term obligations but is manageable.

3. Cash Flow Assessment:

• Cash balances have increased materially to £18,737 from £2,646, showing improved liquidity.
• Debtors of £57,810 represent a significant portion of current assets and require monitoring for timely collection to maintain working capital.
• Current liabilities at £65,336 are only partially covered by current assets of £76,547, yielding net current assets of £11,211 — a reasonable working capital buffer for a small company.
• The company’s use of finance leases suggests reliance on external financing to acquire assets, increasing fixed financial commitments.
• Taxation and social security liabilities are significant (£46,562), warranting careful cash flow management to avoid arrears.

4. Monitoring Points:

• Regular review of debtor ageing and collection efficiency to ensure liquidity is maintained.
• Monitor timely servicing of finance lease obligations and other creditors to avoid default risk.
• Watch for further increases in liabilities, especially short-term, which could strain working capital.
• Track profitability trends to confirm the company can sustain and grow its equity base.
• Review subsequent filed accounts and confirmation statements for any adverse changes or late filings.