Company Number: 12837363

Analysis Date: 2025-07-20 15:20 UTC

Credit Opinion:
CONDITIONAL APPROVAL. CSQS Ltd is a micro-entity in the quantity surveying sector with a short trading history since incorporation in 2020. The company’s net assets have declined significantly in the latest year, driven by a sharp increase in current liabilities exceeding current assets, resulting in a working capital deficit. While the company remains active with no overdue filings and controlled by an experienced director with full ownership, the recent liquidity strain raises concerns about short-term debt servicing ability. Credit approval should be conditional on monitoring updated cash flow forecasts and possibly obtaining additional security or guarantees.

Financial Strength:
CSQS Ltd’s balance sheet shows total net assets of £993 at 31 August 2024, down from £7,507 the previous year. Fixed assets have increased modestly from £5,972 to £13,323, indicating some capital investment. However, current liabilities have increased sharply from £8,253 to £12,668, while current assets fell dramatically from £9,788 to £338, resulting in a negative net current asset position of £-12,330. This indicates a stressed liquidity position and potential difficulty in meeting short-term obligations without external support or improved cash inflows.

Cash Flow Assessment:
The dramatic reduction in current assets, particularly cash or receivables, coupled with rising current liabilities, reflects weak working capital management or timing issues in cash collection and payments. The company has a very small share capital (£1) and limited equity buffer, heightening reliance on operational cash flow or external funds to meet liabilities. The micro-entity status limits detailed profit and loss disclosure, but the absence of audit and small average employee count (2 staff) suggest a lean operation. Close scrutiny of receivables collection, creditor terms, and cash flow forecasts is essential.

Monitoring Points:

• Working capital trends and cash balances in forthcoming monthly management accounts
• Ability to meet short-term creditors and avoid defaults or late payments
• Revenue and profitability trends to restore equity and strengthen net assets
• Director’s actions on credit control and cost management
• Any external financing secured to shore up liquidity
• Timeliness of future statutory filings and confirmation statements