CENTURY WATCH REPAIRS LTD

Executive Summary

Century Watch Repairs Ltd has reversed prior losses to achieve positive net assets and working capital, indicating improved financial stability. The company’s modest size and limited fixed assets advise cautious credit exposure supported by close ongoing monitoring. Overall, it demonstrates an acceptable credit risk profile for limited credit facilities with prudent controls.

CENTURY WATCH REPAIRS LTD - Analysis Report

Company Number: 13556879

Analysis Date: 2025-07-29 20:24 UTC

1. Credit Opinion: APPROVE with caution. Century Watch Repairs Ltd has demonstrated a positive turnaround in financial position over the last year, moving from net liabilities to positive net assets. While the company is small and relatively new, its improving balance sheet and working capital position suggest it has the capacity to meet short-term obligations. However, given the modest asset base and narrow net current assets, lending should be structured conservatively, with monitoring for sustained profitability.

2. Financial Strength: The company’s balance sheet shows a significant improvement from a net liability position of £-356 at August 2023 to net assets of £2,817 at August 2024. Fixed assets remain minimal (£986), indicating limited tangible collateral, but current assets have increased by approximately 20%, largely cash or receivables, improving liquidity. Current liabilities have risen slightly but are comfortably covered by current assets, resulting in positive net working capital of £1,831. Shareholders’ funds are positive and growing, reflecting retained earnings accumulation.

3. Cash Flow Assessment: Current assets exceed current liabilities, indicating adequate short-term liquidity. The increase in average employees from 3 to 4 suggests some expansion but remains modest, limiting overhead growth risks. Without detailed cash flow statements, it is unclear if operating cash flow is strong, but the positive net current assets and improved equity position imply reasonable working capital management. The company’s micro-entity status means limited disclosure, so ongoing cash flow monitoring is prudent.

4. Monitoring Points:

   • Maintain focus on sustaining and growing net current assets to avoid liquidity strain.
   • Monitor trade payables and receivables aging to ensure timely collections.
   • Watch profitability trends to confirm that equity growth is from operations, not just capital injections.
   • Keep track of director’s financial stewardship given sole control by Mr. Hills.
   • Review filing punctuality and any changes in business or market conditions affecting watch repair demand.