CS OPERATIONS LTD

Executive Summary

CS Operations Ltd is a small and financially fragile micro-entity showing very limited net assets and tight working capital. The company’s recent increase in current liabilities and low equity base raise concerns about its liquidity and financial resilience. Conditional credit approval is recommended with secured lending and stringent ongoing monitoring of cash flow and working capital metrics.

CS OPERATIONS LTD - Analysis Report

Company Number: 13401187

Analysis Date: 2025-07-20 11:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. CS Operations Ltd is a micro private limited company with limited financial history, incorporated in 2021. The company shows modest net assets (£161 as of March 2025) and a positive net current asset position, but with a significant decline from prior year net assets (£266 in 2024 to £161 in 2025) and a sharp increase in current liabilities (from £3,792 to £8,964). This indicates some working capital pressure. The directors are relatively new (appointed in 2023), which raises some uncertainty on management continuity and experience. The company’s small scale and narrow financial base limit its resilience to adverse conditions. Lending could be considered if secured or with strict covenants and regular monitoring.

2. Financial Strength: The balance sheet reflects a micro entity with very low equity and net assets of only £161 at the last reporting date. Current assets increased to £10,265, but current liabilities more than doubled, eroding net current assets to £1,301. The company has no fixed assets reported and minimal share capital (£100). The decline in net assets and low capital base suggest limited financial strength and buffer to absorb losses or shocks.

3. Cash Flow Assessment: Cash specifics are not detailed for 2025, but prior year cash was modest (£2,037). The large increase in creditors within one year raises concerns about the company’s liquidity management and ability to meet short-term obligations. Net current assets remain positive but thin relative to liabilities, indicating tight working capital. The company’s ability to maintain liquidity will depend on timely collection of debtors and control of payables.

4. Monitoring Points:

• Track quarterly or interim cash flow and current liabilities closely to ensure no liquidity stress.
• Monitor any changes in director appointments or ownership/control that could impact governance.
• Watch for accounts filing compliance and any material changes in net assets or working capital.
• Assess debtor aging and creditor terms to evaluate ongoing credit risk.
• Review any business developments or contracts that may affect revenue stability.