Company Number: 14778708

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   East Mid Build Limited is a newly incorporated micro-entity in the construction of domestic buildings sector. The company shows positive net assets and shareholders’ funds (£2,254) but current liabilities are significantly high relative to current assets and fixed assets. The presence of substantial prepayments/accrued income (£186,080) appears to bolster net current assets but requires verification of its nature and collectability. Given the company's infancy (incorporated April 2023) and limited trading history, credit approval should be conditional on ongoing monitoring of cash flow and confirmation of contract performance to ensure ability to meet short-term obligations.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£1,000) and very low current assets (£292) compared to current liabilities (£184,219). However, prepayments and accrued income (£186,080) are unusually high for a micro-entity and result in positive net current assets (£2,153) and net assets (£2,254). The company carries a small long-term liability (£909). Overall, the financial position is fragile with low tangible asset backing and heavy current liabilities, but equity is positive. The balance sheet suggests a startup phase with reliance on ongoing contract receipts or financing.

3. Cash Flow Assessment:
   Current assets excluding prepayments are minimal, indicating low immediate liquidity. The large current liabilities due within one year may pressure cash flow. The prepayments/accrued income could represent advance payments or work-in-progress billing, which if realized timely, will support liquidity. The company’s ability to convert receivables to cash rapidly and manage payables efficiently is critical. Working capital is positive but marginal (£2,153), reflecting tight liquidity. Close attention should be paid to cash flow forecasts and debtor aging.

4. Monitoring Points:

• Verify nature and collectability of prepayments and accrued income to confirm liquidity support.
• Monitor actual cash inflows versus current liabilities due within 12 months.
• Track any increases in current liabilities, especially overdue payables or loans.
• Observe revenue growth and profitability trends in subsequent accounts to assess business viability.
• Watch for director changes or any adverse credit events linked to the significant controller, Mr. Danny Charles Bryan.
• Review updated management accounts or cash flow statements for near-term financial health.