Company Number: SC686518

Analysis Date: 2025-07-20 15:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Clifton Central Construction Ltd is a micro-entity in the construction of domestic buildings sector with limited operational history since incorporation in 2021. The company shows positive net current assets and equity, indicating adequate short-term liquidity and solvency. However, the low share capital (£20) and declining net assets from £21,110 in 2023 to £10,503 in 2024 raise some concerns about capital adequacy and financial stability. The directors are experienced and reside at the company address, but the absence of employees and limited asset base suggest a small-scale operation with potential reliance on directors' involvement. Credit approval should be conditional on monitoring cash flow closely and confirmation of ongoing contract pipeline to ensure sustainable income for debt servicing.

2. Financial Strength:
   The balance sheet reflects a stable working capital position with net current assets of £217,099 as of 31 January 2024, slightly down from £224,387 in the prior year. Fixed assets decreased modestly from £9,547 to £6,667, possibly due to depreciation or asset disposals. Long-term liabilities increased marginally to £210,613 but remain covered by total assets less current liabilities (£223,766). The company’s net assets halved from £21,110 in 2023 to £10,503 in 2024, signaling some erosion of equity. Overall, the company maintains a positive balance sheet but with a small equity buffer and rising liabilities that warrant cautious evaluation.

3. Cash Flow Assessment:
   Current assets increased significantly to £548,820 with a corresponding rise in current liabilities to £331,721, maintaining a comfortable net current asset position. The company’s liquidity appears sufficient to meet short-term obligations. However, the absence of employees and micro-entity status suggests limited operational scale and potentially irregular cash inflows. No audit or detailed cash flow statement is available, so cash generation ability should be verified through additional management information or bank statements to assess working capital cycle and payment discipline.

4. Monitoring Points:

• Net assets and equity trends, particularly given the decline in 2024
• Movement in long-term liabilities and repayment schedules
• Cash flow sufficiency and aging of creditors and debtors
• Business growth indicators such as contract wins or turnover progression
• Management actions on cost control and asset utilization
• Compliance with filing deadlines and any changes in director or ownership structure