CSCW (N.I.) LTD

Executive Summary

CSCW (N.I.) LTD demonstrates modest asset growth but faces liquidity challenges due to a significant working capital deficit. While the company is active with stable management, cash flow constraints warrant caution. Credit may be extended on a conditional basis with close scrutiny of liquidity and operational performance going forward.

CSCW (N.I.) LTD - Analysis Report

Company Number: NI668319

Analysis Date: 2025-07-29 18:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CSCW (N.I.) LTD operates in motor vehicle maintenance and repair, showing modest asset growth and a stable but tight working capital position. While net assets have increased from £913 (2023) to £2,617 (2024), current liabilities have risen significantly to £23,119, outpacing current assets of £966, resulting in negative net current assets of £22,153. This indicates potential liquidity strain. The company's small size and micro-entity status limit available financial data, and the increase in fixed assets suggests investment but may also tie up cash. The company’s ability to service debt depends on improving liquidity and managing payables. Given the director’s continuous stewardship and no adverse records, credit can be extended with conditions: close monitoring of cash flow and working capital is essential, and credit limits should be conservative.

2. Financial Strength:
   The company’s balance sheet shows low equity (£2,617) and a growing fixed asset base (£24,770 in 2024 vs. £9,257 in 2023), which may impact liquidity if assets are not readily convertible to cash. Current assets remain low at £966, but current liabilities have more than doubled to £23,119, indicating a liquidity mismatch. The negative net current assets position is a concern, suggesting potential difficulty meeting short-term obligations without additional funding or improved cash inflows. Shareholders’ funds have increased, indicating some retained earnings or capital injection, but overall financial strength remains weak due to tight liquidity.

3. Cash Flow Assessment:
   With current liabilities significantly exceeding current assets, the company faces a working capital deficit, reducing its short-term liquidity cushion. The increase in employees from 3 to 4 may indicate growth but could also pressure cash flow if revenues are not keeping pace. The micro-entity accounts do not provide detailed cash flow statements, but the working capital deficit suggests reliance on external financing or timely collection of receivables to meet obligations. Cash flow management will be critical; the company must ensure sufficient cash generation or access to credit facilities to avoid solvency risks.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to track improvements or deterioration in working capital.
• Timeliness of accounts payable settlements and creditor days to understand cash flow pressures.
• Revenue trends and profitability to assess whether asset investments are generating returns.
• Director and management changes or any adverse credit events.
• Filing compliance to ensure ongoing transparency and regulatory adherence.