Company Number: 15029017

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Core Plumbing Heating & Gas Ltd is a recently incorporated small private limited company operating in plumbing and heating installation. The company has filed its first full set of accounts covering a 13-month period. While the balance sheet shows positive net current assets and shareholders’ funds, the financial scale is very limited, and the company carries a notable corporation tax creditor, indicating taxable profits but also potential tax payment obligations in the near term. Given the limited trading history and small asset base, credit exposure should be modest and closely monitored. Approval can be granted with conditions such as limits on credit lines and regular financial updates to track ongoing cash flow and profitability.

2. Financial Strength:

• Total net assets stand at £4,226, comprised mainly of tangible fixed assets (£2,900 net book value) and net current assets of £1,326.
• Current assets of £12,375 include cash of £3,555 and debtors of £8,820 (largely CIS deductions recoverable).
• Current liabilities are £11,049, dominated by corporation tax payable (£10,534) and directors’ current accounts (£515).
• The company has positive equity, indicating no immediate solvency concerns.
• The small scale of operations and early stage of trading limit the depth of financial strength.

3. Cash Flow Assessment:

• Cash at bank is modest (£3,555), requiring careful management to meet short term obligations.
• The working capital position is positive but tight, with net current assets of £1,326.
• Debtors are mainly CIS deductions recoverable, which may have some delay before conversion to cash.
• The presence of a corporation tax creditor suggests that cash outflows for tax are imminent.
• The business appears to be managing working capital adequately but with limited liquidity buffer.

4. Monitoring Points:

• Monitor monthly cash flow statements to ensure the company can service tax liabilities and operating expenses.
• Track timely collection of debtors, particularly CIS recoverables, to sustain liquidity.
• Watch for changes in current liabilities, especially tax and director account balances.
• Review future trading performance and profitability trends once more data is available.
• Confirm director’s ongoing involvement and assess any changes in control or business strategy.