FIX THIS LTD

Executive Summary

Fix This Ltd shows stable, modest financial improvement with positive net current assets and manageable short-term debt, supporting a conditional credit approval. The company’s liquidity and low leverage are strengths, but limited equity and rising trade creditors require close monitoring to mitigate risk. Continued oversight on cash flow and creditor management is essential for maintaining creditworthiness.

FIX THIS LTD - Analysis Report

Company Number: 12752788

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fix This Ltd demonstrates modest but improving financial health with positive net current assets and net assets increasing year-on-year. The company has no long-term borrowings, which reduces leverage risk. However, the relatively low equity base (£9k) and current liabilities of £31.9k, including bank loans and trade creditors, indicate tight liquidity. The company’s ability to meet short-term obligations depends on maintaining stable cash flows and managing creditors carefully. Given the small scale and limited financial buffer, credit approval is recommended with conditions such as ongoing monitoring of cash flow and prompt payment performance.

2. Financial Strength:
   The balance sheet reflects a small but gradually strengthening position. Total net assets rose from £6,815 in 2023 to £9,035 in 2024, driven by a slight increase in cash balances and a reduction in bank loan balances (£1,470 in 2024 vs. £2,423 in 2023). The company holds no fixed assets disclosed, indicating reliance on current assets for operational needs. Share capital is minimal at £100, and the profit and loss reserve shows accumulated retained earnings of £8,935. Overall, the financial strength is modest, appropriate for a micro/small enterprise in building development, with no significant long-term debt exposure.

3. Cash Flow Assessment:
   Current assets primarily consist of cash at bank (£40,923 as of 2024) with no reported debtors, limiting accounts receivable risk but implying a need for steady cash inflows from ongoing contracts. Net current assets improved to £9,035, signaling working capital adequacy to cover short-term liabilities of £31,888. The presence of short-term bank loans and trade creditors requires careful liquidity management to avoid cash strain. The company’s operating cash flow likely sustains current liabilities, but limited financial reserves suggest vulnerability to unexpected expenses or delayed payments.

4. Monitoring Points:

• Track cash balances and working capital trends quarterly to ensure liquidity adequacy.
• Monitor trade creditor levels closely, especially the increase in trade creditors to £15,000 in 2024 from £2,080 in 2023, which may indicate payment terms pressure or supplier credit reliance.
• Review bank loan balances and any new borrowing to avoid over-leverage.
• Assess profitability trends if future accounts provide P&L details to confirm business growth and debt servicing capability.
• Stay alert for any late filings or compliance issues that could signal operational challenges.