Company Number: 12805798

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Cv Fire & Partitions Ltd is a micro entity operating in construction of commercial buildings with a small team of 5 employees. The company has been active since 2020 and shows a mixed financial trajectory. Its net assets have declined sharply in the most recent year, from £104k in 2023 to £28k in 2024, reflecting a decrease in net current assets from a positive £73.8k to a negative £2.9k. This indicates potential liquidity stress and reduced buffer to cover short-term obligations. The absence of significant share capital (£30) and the decline in working capital require caution. However, the company remains solvent with positive net assets and no overdue filings. Approval is possible subject to close monitoring of cash flow and working capital, and possibly obtaining personal guarantees or stronger security to mitigate credit risk.

2. Financial Strength: The balance sheet shows fixed assets around £31k-£32k, stable over recent years, indicating some investment in long-term resources. However, the sharp deterioration in net current assets from £73.8k (2023) to -£2.9k (2024) signals weakening liquidity and possible operational cash constraints. Total net assets dropped from £104k to £28k, implying a reduction in retained earnings or reserves. The company’s small share capital and modest equity base limit its financial resilience. The negative net current assets suggest current liabilities exceed current assets, which may challenge short-term debt servicing without additional working capital.

3. Cash Flow Assessment: Current liabilities increased to £198k in 2024 from £158k in 2023, while current assets decreased by approximately £37k to £195k. The resulting negative net current assets position highlights a working capital deficit, risking difficulties in meeting immediate obligations. The company’s micro status means limited disclosure, but this trend warrants concern. Without cash flow statements, the extent of cash availability or reliance on credit lines is unclear. The small employee base (5) and relatively stable fixed assets suggest modest operational scale, so cash flow pressure may be manageable if receivables and payables are carefully controlled. Nonetheless, liquidity management will be critical.

4. Monitoring Points:

• Monthly or quarterly working capital and cash flow trends to detect liquidity strains early.
• Timely payment of trade creditors and any bank facilities.
• Profitability trends and retained earnings movements in next accounts filings.
• Any changes in director or shareholder structure that could affect financial stability.
• Business pipeline and contract wins in the commercial building sector to ensure revenue continuity.
• Confirmation of no related-party transactions that might obscure true financial position.
• Monitoring any overdue filings or regulatory changes.