Company Number: 15075667

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Devon Civils & Utilities Limited is a recently incorporated private limited company (since August 2023) operating in civil engineering projects. The latest financials show a positive net asset position and net current assets, indicating initial balance sheet strength. However, the company has no reported employees yet and limited trading history (less than one full year), which introduces uncertainty on sustainable cash flow generation and operational stability. Credit approval can be considered with conditions: ongoing monitoring of trading performance, timely filing of accounts, and confirmation of sustained positive cash flows before any material credit exposure is extended.

2. Financial Strength:

• Net assets stand at £117,056 with total assets less current liabilities at £130,720, reflecting a modest but positive capital base.
• Tangible fixed assets total £71,914, primarily from plant, machinery, and motor vehicles, showing investment in operational capacity.
• Current assets (£332,932) exceed current liabilities (£274,126) by £58,806, demonstrating positive working capital.
• Provisions for liabilities are £13,664, a relatively small amount but to be reviewed for nature and timing.
• Share capital is minimal (£100), with retained earnings accounting for the majority of equity, indicating some initial profitability or capital injection.

3. Cash Flow Assessment:

• Cash at bank of £152,695 supports liquidity; however, trade debtors (£144,649) represent a significant portion of current assets and may affect cash conversion cycles depending on debtor collection efficiency.
• Current liabilities include £50,000 directors’ current accounts, which could be related party loans, a factor to monitor for repayment risk.
• Accruals and deferred income are low (£6,200), suggesting limited short-term obligations beyond trade creditors and tax.
• Absence of historical cash flow statements limits detailed liquidity analysis; close monitoring of cash inflows/outflows and debtor ageing is recommended.

4. Monitoring Points:

• Track future trading results and cash flow statements to assess operational profitability and liquidity sustainability.
• Monitor collection of trade debtors and management of working capital to prevent liquidity strain.
• Review director-related balances for potential repayment issues or financial support dependency.
• Observe timely filing of next accounts and confirmation statements to maintain regulatory compliance.
• Watch for any changes in company status or director appointments that may affect governance or creditworthiness.