Company Number: 12487725

Analysis Date: 2025-07-20 15:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D.W Roofing & Maintenance Ltd is a relatively young private limited company operating in the roofing sector with a stable trading history since 2020. The latest financials show positive net assets and working capital, indicating an ability to meet short-term obligations. However, the company’s net assets have declined modestly from £26,268 in 2023 to £23,647 in 2024, and current liabilities have increased significantly, which warrants monitoring. Given the small scale of operations and limited equity, credit approval should be conditional on regular financial updates and limits on exposure to ensure risk is managed prudently.

2. Financial Strength:

• Net assets stand at £23,647, reflecting modest equity backing.
• Tangible fixed assets are £21,461, showing investment in plant and machinery but subject to depreciation.
• Current assets (£62,768) exceed current liabilities (£47,557), resulting in net current assets (working capital) of £15,211, indicating sufficient liquidity for day-to-day operations.
• The increase in current liabilities from £22,701 in 2023 to £47,557 in 2024 suggests rising short-term obligations, which reduces financial flexibility.
• No long-term debt was reported for 2024, but creditors due after one year stand at £8,948, which should be clarified for nature and repayment terms.

3. Cash Flow Assessment:

• Cash balances have increased significantly to £42,840 from £25,914 in the prior year, improving immediate liquidity.
• Debtors have increased moderately, suggesting stable receivables management.
• Working capital remains positive, supporting ongoing operational liquidity.
• The company’s ability to generate cash internally appears adequate, but the sharp rise in current liabilities requires close monitoring to ensure timely payment and avoid liquidity strain.

4. Monitoring Points:

• Track current liabilities closely to manage increased short-term obligations and ensure they do not outpace current asset growth.
• Monitor net asset trends for any further erosion of equity.
• Review debtor collection times and cash flow cycles regularly to safeguard liquidity.
• Request updated management accounts quarterly to assess ongoing trading performance and cash position.
• Confirm details and terms of creditors falling due after more than one year to assess long-term financial commitments.