EDWARD SHAW LTD

Executive Summary

Edward Shaw Ltd has demonstrated strong financial health and liquidity with improving net assets and cash balances, supporting a positive credit recommendation. The company appears well-managed with stable ownership and no adverse financial or compliance issues. Continued monitoring of cash flow and tax liabilities is advised to maintain creditworthiness.

EDWARD SHAW LTD - Analysis Report

Company Number: 14500084

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion: APPROVE
   Edward Shaw Ltd demonstrates a healthy liquidity position with strong net current assets and increasing shareholders' funds, indicating capacity to meet short-term obligations. The company shows positive growth in net assets and cash balances year over year, reflecting improving financial strength. Directors have maintained prudent financial stewardship, evidenced by controlled liabilities and absence of overdue filings or adverse statuses. No red flags such as director disqualifications or insolvency proceedings exist.

2. Financial Strength:
   The balance sheet reflects an improving net asset position, rising from £11,551 at March 2024 to £21,870 at March 2025. The increase is driven mainly by growth in cash balances (from £6,008 to £29,981) and retention of profits in reserves. Tangible fixed assets are modest (£943) and well covered by equity. Current liabilities remain manageable and stable relative to current assets, supporting a solid working capital base. The company is classified as a small entity with two directors who are also majority shareholders, indicating control and stability.

3. Cash Flow Assessment:
   Cash at bank has increased significantly, improving liquidity and cash flow flexibility. Net current assets stand at £21,870, a comfortable buffer over current liabilities of £8,112. Debtor levels have decreased substantially from £11,801 to £1, suggesting improved collections or billing timing. The company pays dividends but retains sufficient reserves to cover liabilities comfortably. No bank loans or overdrafts are reported, indicating low financial risk from leverage.

4. Monitoring Points:

• Monitor debtor ageing and cash conversion cycles, especially given sharp reduction in debtors.
• Watch corporation tax creditor (£6,220) to ensure timely payment and avoid penalties.
• Track dividend policy to ensure it remains consistent with cash flow generation and does not erode working capital.
• Regularly review directors’ loans and intercompany balances for any unusual transactions.
• Maintain oversight of filing deadlines and compliance to prevent regulatory risks.