CWS PLUMBING AND BATHROOMS LTD

Executive Summary

CWS Plumbing and Bathrooms Ltd is a micro-entity with limited financial resources and a fragile balance sheet, showing negative working capital and minimal equity. While management appears stable with a single experienced director, liquidity constraints require cautious credit exposure. Conditional approval is recommended with strict monitoring of cash flow and working capital to mitigate repayment risks.

CWS PLUMBING AND BATHROOMS LTD - Analysis Report

Company Number: 13953125

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CWS Plumbing and Bathrooms Ltd is a micro-entity with a very recent incorporation date (March 2022) and modest financial figures. The company has shown a slight increase in net assets from £139 in 2023 to £348 in 2024, indicating some improvement but still a very fragile equity base. Current liabilities exceed current assets, resulting in negative net current assets in both years, which raises concerns about short-term liquidity and working capital management. The single director and sole owner, Mr. Chad Sheppeck, has direct operational experience as a plumber, which supports management stability but limits diversification of skills. Given the thin capital base and working capital deficit, credit facilities should be limited and closely monitored; approval can be granted conditionally with restrictions on credit exposure and requirements for updated financials and cash flow forecasts.

2. Financial Strength:
   The company’s balance sheet shows very modest fixed assets (£3,150 in 2024) and an increase in current assets primarily due to cash or receivables rising from £1,798 to £14,834. However, current liabilities have also increased significantly to £17,636, causing a net current liability position (-£2,802) and minimal net assets of £348. This indicates a weak equity buffer and reliance on short-term financing or creditor support. The company’s micro status and single-employee structure reflect a small-scale operation with limited financial resources, which constrains resilience against economic shocks. The small net asset figure suggests limited capacity to absorb losses.

3. Cash Flow Assessment:
   The working capital deficit highlights potential liquidity constraints. While current assets increased, they remain insufficient to cover short-term liabilities, which could impact the company’s ability to meet immediate debts without additional financing. The absence of detailed cash flow statements limits precise assessment, but the negative net current assets suggest tight liquidity. The increase in current assets may reflect higher cash balances or receivables, which could be positive if collections are timely. However, the company should maintain strict cash management to avoid solvency risks.

4. Monitoring Points:

• Regular review of cash flow statements and working capital trends to detect liquidity stress early.
• Watch for any further increases in current liabilities that could exacerbate short-term funding gaps.
• Monitor payment performance with suppliers and any changes in credit terms.
• Assess future filings for improvements in net assets and profitability to build financial resilience.
• Observe any changes in ownership or management that could affect operational stability.