CERAMIC DECORATING TECHNOLOGY LTD

Executive Summary

Ceramic Decorating Technology Ltd is a small, financially stable company with positive net assets and strong working capital. Its liquidity position and management stability support its ability to meet credit obligations. Continued monitoring of asset trends and compliance filings is recommended to maintain an up-to-date risk assessment.

CERAMIC DECORATING TECHNOLOGY LTD - Analysis Report

Company Number: 13295688

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion: APPROVE
   Ceramic Decorating Technology Ltd demonstrates a stable financial position with positive net assets and consistent working capital over the past three years. The company operates within the micro-entity accounting regime, indicating a small scale but manageable business size. The absence of overdue filings and directors in good standing supports confidence in management quality. While the fixed asset base is relatively low and declining, current assets comfortably cover short-term liabilities, indicating sound liquidity to service debt. Given the company’s stability and adequate liquidity, it is capable of meeting credit obligations, subject to usual monitoring.

2. Financial Strength:
   The balance sheet reflects net assets of £28,416 as of 31 March 2024, slightly down from £30,724 the previous year but still positive and stable. The company maintains a positive net current asset position (£26,005), providing a sufficient buffer against short-term liabilities (£30,202). Fixed assets have decreased from £10,367 in 2021 to £2,411 in 2024, which suggests limited investment in long-term assets but also low capital intensity and potentially lower depreciation charges. Share capital is minimal (£5), indicating the company is primarily financed through retained earnings or other equity. Overall, the balance sheet is conservative with low gearing risk.

3. Cash Flow Assessment:
   Current assets of £56,207 compared to current liabilities of £30,202 results in a current ratio of approximately 1.86, indicating good short-term liquidity. The company’s working capital position has remained stable over recent years, with net current assets around £26k. The average number of employees is 2, suggesting low fixed overheads. While no detailed cash flow statement is provided, the stable working capital and positive equity imply the company can generate sufficient internal cash flow to cover operational needs and short-term liabilities, supporting its ability to service credit facilities.

4. Monitoring Points:

• Track any material decline in net current assets or net asset value, which could indicate liquidity stress or asset impairment.
• Monitor fixed asset base trends to assess capital expenditure and potential impact on depreciation or asset replacement needs.
• Watch for changes in director appointments or any adverse conduct records that could affect management quality.
• Review timely filing of annual accounts and confirmation statements to ensure compliance and transparency.
• Keep an eye on turnover and profitability (not currently provided) to assess operational performance and debt servicing capacity over time.