EVANS HOME IMPROVEMENTS LTD

Executive Summary

Evans Home Improvements Ltd demonstrates initial financial stability with positive net assets and working capital in its first year of trading. While governance appears sound with no adverse director records, the limited operating history and lack of profit data warrant conditional credit approval subject to ongoing performance monitoring. Close attention should be paid to liquidity trends and statutory compliance as the company develops.

EVANS HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 14938022

Analysis Date: 2025-07-20 11:22 UTC

1. Credit Opinion: APPROVE (conditional on continued trading) Evans Home Improvements Ltd is a newly incorporated micro-entity in the construction sector with its first set of accounts filed. The financials show positive net assets and working capital, indicating the company currently has the capacity to meet short-term obligations. The directors hold significant control with no adverse records, suggesting sound governance. However, as a young business with limited trading history and only two employees, credit approval should be conditional on monitoring future trading performance and cash flow development to confirm ongoing viability.

2. Financial Strength: The balance sheet at 30 June 2024 shows fixed assets of £56,424 and current assets of £139,595 against current liabilities of £106,081, resulting in net current assets of £33,514—a modest working capital buffer. Net assets stand at £88,938, entirely held as shareholders’ funds, reflecting no external debt. The company’s micro-entity status means accounts are prepared under simplified standards, with no profit and loss details disclosed, limiting insight into profitability and capital structure dynamics. Overall, the financial structure appears stable for a start-up with no leverage.

3. Cash Flow Assessment: Current assets primarily consist of cash, debtors, or stock sufficient to cover short-term liabilities by 31%. The net current asset position indicates the company has some liquidity to meet immediate obligations. The absence of detailed cash flow statements and profit data constrains a thorough evaluation; however, the positive working capital and absence of overdue filings suggest adequate short-term liquidity. Ongoing cash management should be closely observed given limited financial history and small operational scale.

4. Monitoring Points:

• Future filing of profit and loss accounts to assess profitability and earnings stability.
• Trends in working capital and cash flow to ensure sufficient liquidity as business scales.
• Changes in director or ownership structure that may affect governance or financial control.
• Contract wins or revenue growth as indicators of business viability in the construction sector.
• Any overdue statutory filings or late payments that could signal financial distress.