CONNECT CABLING & UTILITIES LTD

Executive Summary

Connect Cabling & Utilities Ltd is a recently established micro-entity with limited financial history and critically low liquidity. Its negative working capital and absence of trading results indicate high credit risk and inability to service debt currently. Approval of credit at this stage is not recommended without substantial operational progress and financial improvement.

CONNECT CABLING & UTILITIES LTD - Analysis Report

Company Number: 15120116

Analysis Date: 2025-07-29 13:15 UTC

1. Credit Opinion: DECLINE
   Connect Cabling & Utilities Ltd is a very newly incorporated micro-entity with limited operating history (just over one year). The financials show minimal current assets (£1) against current liabilities of £1,301, resulting in a negative working capital position (net current liabilities of £1,300). Although net assets are positive (£10,450) due primarily to fixed assets, the absence of current liquidity and lack of revenue or profit data raise serious concerns about the company’s ability to meet short-term obligations. Furthermore, no employees are recorded, indicating the company may not yet be operational or generating cash flow. Given these factors, the risk profile is high and the company lacks demonstrated capacity to service any credit facility at this stage.

2. Financial Strength
   The balance sheet shows fixed assets of £12,250, a negligible amount of current assets (£1), and current liabilities of £1,301, leading to negative net current assets. Total net assets stand at £10,450, supported by equity capital presumably from the sole shareholder (75-100% ownership by the director). There are accruals/deferred income of £500 which further reduce net assets. The company is classified as micro and exempt from audit, limiting the detail and assurance of financial information. The balance sheet structure reflects an early-stage investment phase rather than operating profitability or financial robustness.

3. Cash Flow Assessment
   Cash flow appears critically constrained with current assets almost nil and current liabilities exceeding cash resources. No profit and loss data are available, but the reported figures imply no trading income or cash inflows to cover liabilities. The lack of employees and minimal current assets signal that working capital is not sufficient to sustain operations or debt servicing. Without positive cash generation or external funding, liquidity risk is high.

4. Monitoring Points

• Future filing of profit & loss accounts and cash flow statements to assess trading performance.
• Changes in current assets and liabilities to track working capital improvements.
• Payment history and any credit defaults or delays.
• Evidence of new contracts, revenue streams, or operational activity.
• Director’s ongoing involvement and financial support given sole ownership.
• Timely submission of next accounts and confirmation statements to ensure compliance.