Company Number: 13108351

Analysis Date: 2025-07-20 11:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CWBS Carpentry & Building Ltd, a micro-sized private limited company operating in domestic construction, shows improving net asset growth but persistent short-term liquidity pressures. The company’s net assets increased markedly from £3,262 in 2024 to £12,671 in 2025, indicating improving financial stability. However, the net current liabilities of £1,172 at the latest year-end reflect a working capital deficit, which may constrain the ability to cover immediate liabilities. Given the company’s small scale, limited share capital (£1), and negative working capital position, credit approval should be conditional upon monitoring cash flow management and ensuring short-term creditors are met promptly.

2. Financial Strength:

• Net Assets have increased significantly over the last year (from £3,262 to £12,671), indicating retained earnings or capital injections improving equity.
• Fixed assets increased from £8,793 to £13,843, suggesting modest investment in equipment or property.
• Despite the rise in current assets to £33,081, current liabilities also increased to £34,253, causing net current liabilities of £1,172. This implies some short-term funding imbalance.
• The company remains a micro-entity with limited capital and a small employee base (3 average employees), which limits scale but also risk exposure.
• No provisions for liabilities were reported in 2025, improving from £1,412 in the prior year, which may reflect some resolution of contingent obligations.

3. Cash Flow Assessment:

• Negative net current assets indicate potential liquidity risk; the company may struggle to meet short-term obligations without additional cash inflows or refinancing.
• Current assets grew substantially, primarily cash or receivables, but surpassed by current liabilities.
• The small size and growing fixed assets suggest limited cash reserves might be tied up in non-liquid assets.
• The absence of audit and reliance on micro-entity provisions limit insight into cash flow details, so monitoring trading performance and debtor collection is prudent.

4. Monitoring Points:

• Track net current asset position quarterly to ensure the working capital deficit does not worsen.
• Monitor trade receivables days and payment terms with suppliers to avoid liquidity squeeze.
• Watch for any significant changes in short-term creditor balances or provisions.
• Review turnover and profitability trends in interim management accounts to assess operational cash generation.
• Keep an eye on director loans or related-party transactions that could affect cash flow or balance sheet strength.
• Confirm timely filing of accounts and confirmation statements to avoid compliance risk.