CMF DESIGN SOLUTIONS LTD

Executive Summary

CMF Design Solutions Ltd has demonstrated a positive turnaround in net assets but continues to face liquidity challenges with significant negative working capital. The company’s small scale and limited cash resources present moderate credit risk, warranting conditional approval with tight monitoring. Careful attention to cash flow management and prompt creditor payments will be essential to sustain creditworthiness.

CMF DESIGN SOLUTIONS LTD - Analysis Report

Company Number: SC676999

Analysis Date: 2025-07-29 20:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CMF Design Solutions Ltd is a micro private limited company operating in landscape services. The company has shown improvement in its net asset position, moving from a negative shareholders’ funds position in 2023 (£-2,856) to a positive one in 2024 (£3,293). However, it continues to exhibit significant working capital deficiencies with net current liabilities of £11,797 as of April 2024, indicating liquidity strain. This raises concerns about the company's ability to meet short-term obligations without external support or improved cash inflows. Given the limited scale (one employee) and modest fixed assets (£15,090), the company’s creditworthiness is contingent on continued operational improvement and cash flow management. Credit can be approved with conditions including close monitoring of cash flows and possibly securing personal guarantees or collateral.

2. Financial Strength:
   The balance sheet shows total fixed assets of £15,090, which while modest, represents an increase from the prior year (£900). Current assets are low at £3,080 compared to current liabilities of £14,877, resulting in a negative working capital position. The company’s net assets have turned positive, reflecting accumulated retained earnings or capital injection, but the small scale and negative liquidity position weaken financial resilience. Share capital remains nominal (£100), indicating limited equity buffer.

3. Cash Flow Assessment:
   The company’s negative net current assets position signals ongoing liquidity pressure with more short-term liabilities than assets. This implies reliance on timely collection of receivables, or additional financing to meet creditor demands. The absence of cash disclosed in 2021 and low current assets in 2024 highlights risk in short-term cash availability. With only one employee and limited fixed assets, working capital management is critical. Cash flow forecasts and credit facilities should be reviewed periodically to ensure debt servicing capability.

4. Monitoring Points:

• Track net current assets and liquidity ratios quarterly to detect further deterioration.
• Monitor trade creditor aging and any overdue payables.
• Review profitability trends and cash flow from operations to assess operational improvements.
• Keep watch on director’s continued involvement and any changes in company control.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risk.