CRAIG HOWIE GOLF LIMITED

Executive Summary

Craig Howie Golf Limited presents a stable financial position with good liquidity and a positive net asset base for its size and age. While the company has grown its asset base and cash reserves, the increase in current liabilities requires monitoring to avoid liquidity issues. Conditional credit approval is recommended, subject to ongoing verification of cash flow stability and creditor management.

CRAIG HOWIE GOLF LIMITED - Analysis Report

Company Number: SC678608

Analysis Date: 2025-07-29 20:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Craig Howie Golf Limited currently demonstrates a positive net asset position and growing working capital, indicating an ability to meet short-term obligations. However, the company is relatively young (incorporated 2020) with low equity (£71,789) and modest tangible assets (£4,620). The increase in current liabilities from £76k to £92k year-on-year, primarily in other creditors, warrants monitoring. Given the company's small scale and limited financial history, credit approval should be conditional on continued stable cash flows and timely payments from debtors.

2. Financial Strength:
   The balance sheet shows net assets of approximately £72k as of October 2023, down slightly from £78k the previous year, reflecting a minor reduction in retained earnings. Tangible fixed assets increased to £4,620, suggesting some reinvestment. The company maintains a strong cash position (£158k) relative to current liabilities (£92k), leading to net current assets of £68k. Share capital remains minimal at £100, indicating limited shareholder funds but no significant debt is reported. Overall, financial strength is adequate for a micro/small company but remains vulnerable to fluctuations in working capital or unexpected liabilities.

3. Cash Flow Assessment:
   Cash at bank increased to £158k, up from £141k the prior year, showing good liquidity and cash management. Debtors have decreased from £11,476 to £1,825, which may indicate improved collections or reduced sales on credit. Current liabilities rose by approximately £16k, driven by "other creditors" increasing from £56k to £90k, which may reflect accrued expenses or delayed payments to suppliers. The company holds net current assets of £68k, suggesting sufficient short-term liquidity to cover immediate obligations. Close attention should be paid to the composition and aging of creditors to assess potential cash flow strain.

4. Monitoring Points:

• Creditors and other payables growth: Confirm nature and timing to ensure no liquidity bottlenecks.
• Debtor collections: Monitor for timely payments to maintain cash flow.
• Profitability trends: Although no P&L was filed, variation in reserves suggests some profit erosion; updated trading results needed.
• Working capital management: Maintain positive net current assets and cash buffers given limited borrowing capacity.
• Director’s ongoing commitment and business plan execution, as the company depends heavily on a single director.