DOC WINDOWS DOUBLE GLAZING LIMITED

Executive Summary

DOC WINDOWS DOUBLE GLAZING LIMITED has improved its net asset position but continues to face short-term liquidity challenges. The company’s small scale and working capital deficit suggest credit should be extended cautiously with strict monitoring of cash flow and financial compliance. Overall, credit facilities may be conditionally approved pending evidence of ongoing operational and financial improvement.

DOC WINDOWS DOUBLE GLAZING LIMITED - Analysis Report

Company Number: 13821240

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DOC WINDOWS DOUBLE GLAZING LIMITED shows recent improvement in its financial position, moving from net liabilities in 2022 to a positive net asset balance in 2023. However, liquidity remains strained, with net current liabilities (working capital deficit) of £2,241 in 2023, though improved from £10,682 in 2022. The company is still in an early stage, with only one employee and micro-entity filing status, indicating a small operational scale. Credit facilities may be extended with conditions such as monitoring of cash flow and timely receipt of updated accounts, due to limited asset base and persistent short-term liquidity pressure.

2. Financial Strength:
   The company’s fixed assets are minimal (£3,515), indicating limited collateral value. The move from net liabilities (£-10,141) in 2022 to net assets of £1,274 in 2023 is positive, signaling some recovery or capital injection. However, the balance sheet remains fragile with a working capital deficit of £2,241 at year-end 2023, meaning current liabilities exceed current assets. This short-term imbalance suggests reliance on external funding or owner financing to meet immediate obligations. Shareholders’ funds are very low, reflecting limited equity cushion against business risks.

3. Cash Flow Assessment:
   Current assets (£15,443) are largely likely to be cash and receivables but are insufficient to cover current liabilities (£17,684). The negative net current assets position indicates potential liquidity stress, which could impact the company’s ability to service debt or meet supplier payments promptly without additional working capital support. The company’s micro size and one-person employee base imply modest cash flow generation capacity. Close scrutiny of cash inflows and outflows is necessary before extending credit.

4. Monitoring Points:

• Regular review of updated management accounts and cash flow forecasts to ensure liquidity improvement.
• Timely filing of statutory accounts and confirmation statements to maintain compliance and transparency.
• Watch for changes in current liabilities or delayed payments that could worsen working capital.
• Monitor any related party transactions or owner loans that may affect financial stability.
• Evaluate any growth in fixed assets or capital base that could improve collateral coverage.