COULDSTONE SERVICES LTD

Executive Summary

Couldstone Services Ltd is a financially stable micro-entity with a strong liquidity position and growing equity base, reflecting effective management and sound operational performance. The company’s ability to comfortably cover short-term liabilities and the absence of adverse compliance issues support credit approval. Ongoing monitoring should focus on working capital management and business growth sustainability.

COULDSTONE SERVICES LTD - Analysis Report

Company Number: 12824265

Analysis Date: 2025-07-20 16:16 UTC

1. Credit Opinion: APPROVE
   Couldstone Services Ltd demonstrates a positive financial trajectory with a strong increase in net current assets and shareholders' funds over recent years. The company operates in a niche technical consulting sector, which can offer resilience if managed prudently. No adverse director conduct records or overdue filings are noted, supporting sound management stewardship. The micro account size and modest fixed assets indicate a small, focused operation but the liquidity position and equity growth justify credit approval for typical SME facility sizes.

2. Financial Strength:
   The balance sheet reflects solid financial health for a micro entity. Shareholders' funds more than doubled from £39k in 2023 to £74k in 2024, driven by growth in current assets (cash/debtors) and controlled liabilities. Fixed assets are minimal (£254), consistent with the consulting nature of the business. The company maintains strong net current assets (£73,827), indicating good working capital coverage and no reliance on long-term debt.

3. Cash Flow Assessment:
   Current assets (£112,360) comfortably exceed current liabilities (£38,533), resulting in a net current asset position that signals ample short-term liquidity. The sizeable increase in current assets year-over-year suggests improved cash management or business growth. The company’s ability to meet short-term obligations is strong, reducing credit risk related to liquidity.

4. Monitoring Points:

• Maintain close monitoring of debtor turnover and cash conversion to ensure working capital remains healthy.
• Watch for any rapid increase in liabilities or delayed payments that could stress liquidity.
• Track revenue growth and profitability trends to confirm continued positive financial trajectory.
• Keep oversight on director changes or any shifts in business strategy that may affect risk profile.