Company Number: 13115778

Analysis Date: 2025-07-19 13:04 UTC

1. Credit Opinion: APPROVE. Domestic Plastering Ltd demonstrates a solid liquidity position with positive net current assets and increasing shareholders' funds over the prior year. The company is small and relatively new (incorporated in 2021), but its financial trajectory shows growth in working capital and net assets, suggesting good operational performance and prudent financial management. There are no indications of financial distress or overdue filings. Given its micro-entity status and modest scale, credit exposure should be moderate and facilities sized accordingly.

2. Financial Strength: The balance sheet as of 31 January 2024 shows net current assets of £63,998, up from £43,361 the previous year, reflecting an improved working capital position. Total net assets and shareholders’ funds increased correspondingly, indicating retained earnings or capital injections. The company holds minimal share capital (£100), typical of small private companies. The absence of fixed assets data suggests limited long-term investments, consistent with a service-based plastering business. Overall, the financial structure appears healthy with no short-term solvency concerns.

3. Cash Flow Assessment: Current assets (£73,306) comfortably cover current liabilities (£9,308), resulting in a strong current ratio (~7.9x) which implies ample liquidity to meet short-term obligations. The increase in net current assets and current assets year-over-year points to improved cash or receivables management. There is no detailed cash flow statement, but the working capital trend and absence of overdue payables support the view that the company maintains good cash flow discipline. The single employee count indicates low fixed overheads, enhancing cash flow stability.

4. Monitoring Points:

• Continue monitoring working capital trends to ensure liquidity remains strong, especially if business scales up.
• Track profit and loss disclosures when available to assess profitability and cash generation.
• Watch for any significant changes in current liabilities or credit terms that could strain cash flow.
• Review director and ownership changes or any external economic impacts on the construction sector that may affect payment patterns.
• Confirm timely filing of accounts and returns to avoid regulatory or reputational risks.