COS ARCHITECTURE LTD

Executive Summary

COS Architecture Ltd demonstrates improving financial health with stronger net assets and positive working capital, supporting its ability to meet short-term liabilities. The company’s micro-entity status and small scale warrant cautious credit exposure with ongoing monitoring of profitability and liquidity metrics. Overall, the firm presents a satisfactory credit profile for modest lending facilities.

COS ARCHITECTURE LTD - Analysis Report

Company Number: 12930338

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: APPROVE
   COS Architecture Ltd shows improving financial strength with positive net assets increasing from £4,138 in 2022 to £14,744 in 2023. The company has moved from net current liabilities to net current assets, demonstrating better short-term liquidity and working capital management. The absence of overdue filings and the director’s active involvement also support creditworthiness. However, as a micro-entity with limited financial disclosure and a small operational scale, credit exposure should remain moderate and monitored.

2. Financial Strength:
   The balance sheet reflects a small but improving financial position. Fixed assets have slightly decreased but remain stable at £5,126. Current assets nearly doubled from £10,071 to £20,882, improving liquidity. Current liabilities decreased marginally to £11,264. Net assets and shareholders’ funds have more than tripled, indicating retained earnings or capital injections strengthening equity. The company has no external debt indicated, reducing financial risk.

3. Cash Flow Assessment:
   The transition from net current liabilities of (£2,123) in 2022 to net current assets of £9,618 in 2023 shows a significant improvement in working capital management. This suggests enhanced cash flow from operations or better management of receivables and payables. The company’s small scale and micro-entity status mean cash flow volatility is possible, but current liquidity appears adequate to meet short-term obligations.

4. Monitoring Points:

• Continued monitoring of working capital to ensure liquidity is maintained.
• Profitability trends as no profit & loss data is provided; future filings should be reviewed to confirm earnings stability.
• Director’s management decisions and any changes in trade creditors/debtors.
• Impact of economic conditions on architectural sector demand.