CQ CONTRACTS (N.I.) LIMITED

Executive Summary

CQ CONTRACTS (N.I.) LIMITED exhibits stable financial health with improving equity and working capital, reflecting sound short-term liquidity. The company’s consistent management and up-to-date compliance status support a positive credit profile, justifying an approval recommendation. Continued monitoring of current liabilities and operational performance will ensure sustained creditworthiness.

CQ CONTRACTS (N.I.) LIMITED - Analysis Report

Company Number: NI667519

Analysis Date: 2025-07-20 13:12 UTC

1. Credit Opinion: APPROVE
   CQ CONTRACTS (N.I.) LIMITED demonstrates stable financial health with positive net assets and improving working capital. The company has maintained an active status since incorporation in 2020, with no overdue filings or signs of distress. Directors have been consistently involved since inception, showing continuity in management. The micro-entity classification suggests a small-scale operation with limited complexity, which aligns with manageable credit risk. Given the financial stability and absence of red flags, the company is considered capable of meeting its debt obligations.

2. Financial Strength:
   The balance sheet shows net assets of £69,250 as of 29 February 2024, an increase from £65,989 the previous year, indicating modest growth in equity. Fixed assets have decreased slightly from £19,364 (2023) to £14,788 (2024), reflecting possible asset disposals or depreciation. Current assets increased to £137,625, while current liabilities rose to £83,163, resulting in net current assets (working capital) of £54,462, up from £46,625. This positive working capital position supports short-term liquidity and operational flexibility. Overall, the financial structure is conservative and sound for a micro-entity.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the increase in current assets relative to current liabilities suggests improved liquidity. The company’s working capital has strengthened, indicating the ability to cover short-term obligations without strain. The consistent employment of two staff members and the absence of overdue accounts or returns filings reinforce the view of effective cash management. However, absence of profit and loss data limits deeper cash flow analysis.

4. Monitoring Points:

• Monitor any changes in current liabilities that might erode working capital.
• Track future filings for timely submission and any changes in financial performance.
• Observe fixed asset trends for indications of capital expenditure or disposals impacting operational capacity.
• Watch director and ownership structure for any changes that could impact governance or control.