Company Number: 13229687

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. C.J Stone Works Ltd is a micro-entity operating in building completion and project development, with a single director who also holds full control. The company shows modest net assets and persistent net current liabilities over the past years, indicating some liquidity constraints. However, there are no overdue filings, no signs of insolvency or administration, and the business is stable with consistent director involvement. Given the small scale and localized nature of the business, credit approval is possible but should be conditional on improved liquidity monitoring and limits on exposure.

2. Financial Strength: The balance sheet reveals a small but positive net asset base (£5,180 as of Feb 2024), down from £8,305 the previous year. Fixed assets have decreased slightly to £8,830, reflecting limited capital investment or asset disposals. The company consistently carries net current liabilities (£3,650 in 2024 vs £2,733 in 2023), indicating working capital deficits. Shareholders’ funds have decreased, suggesting retained losses or dividend payments exceeding profits. Overall, the financial strength is weak but not critical, typical for a micro-business in early years.

3. Cash Flow Assessment: Current assets (£5,095) are insufficient to cover current liabilities (£9,200), resulting in negative working capital. This reflects potential cash flow pressure, with a risk of short-term funding gaps. Prepayments and accrued income are minimal (£455), offering little liquidity buffer. The company employs only one person (the director), which limits payroll burden but also indicates limited operational scale. Without profit and loss details, cash generation capacity is uncertain. Close monitoring of receivables collection, creditor terms, and bank facilities is recommended.

4. Monitoring Points:

• Working capital trends: watch for further deterioration or improvement in net current assets.
• Timely payment of creditors to avoid supply chain or legal issues.
• Director’s financial management and whether additional equity or financing injections occur.
• Profitability indicators once P&L data is available, to assess sustainability.
• Any changes in business scale or asset base that might impact credit risk.
• Compliance with filing deadlines and any changes in company status or control.