Company Number: 13675961

Analysis Date: 2025-07-19 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Count Heating Ltd demonstrates signs of recovery from prior losses but remains financially fragile. The company has moved from net liabilities of £3,050 in 2023 to net assets of only £1 in 2024, indicating extremely limited equity. Current liabilities significantly exceed current assets, resulting in negative working capital of £3,313, which raises concerns about short-term liquidity and the company's ability to meet obligations as they fall due. The director’s loan balance has reduced but remains substantial (£2,396), suggesting reliance on related-party funding. Approval can be considered conditionally, subject to close monitoring of cash flows, prompt payment of creditors, and evidence of sustained profitability or capital injection.

2. Financial Strength:
   The balance sheet shows fixed tangible assets of £4,092 against current liabilities of £4,041, resulting in total assets less current liabilities of £779. However, current liabilities are more than five times the current debtors (£728), and the company continues to carry a provision for liabilities (£778). Shareholders’ funds are nominal at £1, reflecting minimal net worth and limited buffer against trading losses. The company has improved from a net liability position, but the financial strength remains weak, with minimal retained earnings and reliance on director funding.

3. Cash Flow Assessment:
   Negative net current assets of £3,313 indicate working capital deficiency and potential liquidity risks. The low level of debtors and high current liabilities suggest tight cash flow management is imperative. The director's loan is repayable on demand, which could either support liquidity if funds are available or constitute a risk if withdrawn. No audit or detailed profit and loss information is available, limiting visibility on operating cash generation. The company must maintain strict control over receivables and payables to avoid cash shortfalls.

4. Monitoring Points:

• Working capital trends and improvement in net current assets.
• Changes in director’s loan balance and related-party funding.
• Timely payment of creditors and tax liabilities.
• Future profitability indicators, including turnover growth and margin improvements.
• Any capital injections or loan restructures that strengthen the equity base.
• Filing of subsequent accounts and compliance with statutory deadlines.