D&A XHELILI LTD

Executive Summary

D&A Xhelili Ltd maintains a modest but stable financial position with positive net current assets and no overdue filings. The decline in net assets and low cash reserves necessitate cautious credit extension with conditions to regularly monitor liquidity and profitability. Overall, the company shows potential for credit support if operational cash flows remain stable and financial discipline is maintained.

D&A XHELILI LTD - Analysis Report

Company Number: 13550613

Analysis Date: 2025-07-20 16:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D&A Xhelili Ltd is a small private limited company operating in the building completion and finishing sector. The company demonstrates positive net current assets and shareholder funds, indicating some financial stability. However, the significant reduction in net current assets and shareholder funds from £3,927 in 2023 to £1,859 in 2024, coupled with low cash balances (£1,656), suggests tightening liquidity. The company has limited liabilities and no overdue filings, reflecting sound compliance. Given its recent incorporation in 2021 and modest scale, credit facilities could be extended with conditions such as periodic financial reviews and limits aligned to working capital needs.

2. Financial Strength:
   The balance sheet shows total net assets of £1,859 as of August 2024, down from £3,927 the prior year. This decline is primarily due to a decrease in retained earnings, indicating either lower profitability or increased distributions. The company’s share capital is nominal (£1), which places reliance on retained earnings as a buffer. Current liabilities are minimal (£203), and the company maintains positive net current assets (£1,859), supporting short-term solvency. The financial position is stable but modest, typical for a micro/small business, with no long-term liabilities reported.

3. Cash Flow Assessment:
   Cash at bank has increased slightly from £1,210 to £1,656, which supports ongoing operations but remains low, limiting flexibility. The company’s net current assets position suggests sufficient working capital to meet short-term obligations, but the sizable decrease in net current assets raises concerns about cash flow pressures. There is no indication of long-term debt or overdraft facilities, implying operations are funded mainly by equity and trade creditors. Monitoring cash conversion cycles and timely collection of receivables will be critical to sustain liquidity.

4. Monitoring Points:

• Track changes in retained earnings and net current assets to identify profitability and liquidity trends.
• Review cash flow statements or management accounts to ensure cash balances remain adequate for operational needs.
• Monitor any increase in current liabilities or trade creditors that could signal supplier payment strain.
• Assess the impact of market conditions on the building completion sector, as economic downturns may affect contract flows and payment cycles.
• Confirm director's ongoing financial stewardship and compliance with filing deadlines.