CLASS 1 CARPENTERS LTD

Executive Summary

Class 1 Carpenters Ltd is a small but financially stable micro-entity with positive net assets and strong working capital, indicating it can meet short-term obligations and service modest credit facilities. The company is compliant and shows no signs of distress, though its scale and limited disclosures require ongoing monitoring as it grows. Overall, it is creditworthy for small-scale lending with prudent oversight.

CLASS 1 CARPENTERS LTD - Analysis Report

Company Number: 13579684

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: APPROVE — Class 1 Carpenters Ltd demonstrates a solid micro-entity balance sheet with positive net assets and net current assets. The company is active, compliant with filing deadlines, and shows no signs of financial distress or insolvency. Despite its small scale and single employee, it maintains adequate liquidity and equity, suggesting it can service debt obligations at a modest level. The lack of audit and limited disclosures are typical for micro entities but necessitate monitoring as the company grows or seeks higher credit lines.

2. Financial Strength: The company’s net assets improved from £16,451 in 2022 to £22,825 in 2023, driven primarily by an increase in current assets and manageable current liabilities. Fixed assets remain minimal (£740), consistent with a service-based construction business. The absence of provisions in 2023 (previously £7,210) strengthens the balance sheet. Shareholders’ funds correspond directly to net assets, indicating no external debt on the balance sheet. Overall, the financial position is stable but limited in scale.

3. Cash Flow Assessment: Current assets of £29,586 against current liabilities of £7,501 yield a strong net working capital position (£22,085), indicating good short-term liquidity to meet immediate obligations. The rise in current liabilities from £164 to £7,501 suggests some increased payables or short-term borrowings but remains well covered. The company’s single-employee structure likely keeps overhead low, aiding cash flow. However, detailed cash flow data is unavailable, so the assessment relies on balance sheet liquidity.

4. Monitoring Points:

• Monitor growth in current liabilities to ensure they remain proportionate to current assets.
• Watch for any increase in provisions or contingent liabilities that could impair net assets.
• Track revenue growth and profitability trends (not disclosed here) to assess capacity for debt servicing.
• Review any changes in director or ownership that could affect governance or financial stewardship.
• Ensure continued compliance with filing deadlines and maintain transparent financial disclosures as the business scales.