FLOWERS SCAFFOLDING LTD

Executive Summary

Flowers Scaffolding Ltd exhibits early-stage growth with improving net assets but continues to experience working capital deficits indicating short-term liquidity challenges. The business is closely held and stable, but credit facilities should be extended cautiously with conditions to monitor cash flow and working capital closely. Continued oversight of debtor collection and creditor management will be essential to mitigate risk.

FLOWERS SCAFFOLDING LTD - Analysis Report

Company Number: 13580883

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Flowers Scaffolding Ltd is a micro private limited company operating since 2021 in scaffold erection. The company shows growth in net assets and fixed assets over the past three years but still reports net current liabilities, indicating some short-term liquidity stress. The sole director and majority shareholder appears committed, with no negative director conduct records. Given the business scale and current liabilities exceeding current assets, credit approval is recommended with conditions—specifically, monitoring cash flow closely and ensuring working capital improvements.

2. Financial Strength:
   The balance sheet reflects a small but improving equity base (£2,590 in 2024 vs. £350 in 2023), supported by increasing fixed assets (£13,632 in 2024). However, the company consistently has negative net current assets (£-5,172 in 2024), with current liabilities (£22,580) exceeding current assets (£17,408). This weakens short-term financial stability and suggests reliance on external funding or trade credit. The absence of long-term liabilities is positive, but accruals and deferred income (£4,576) in 2024 indicate some obligations that need management.

3. Cash Flow Assessment:
   The working capital deficit is a concern, as the company’s current liabilities outstrip current assets by over £5k. With only one employee and low operating scale, cash generation is likely limited, so timely collection of receivables and control over payables will be critical. No audit is performed, so cash flow statements are unavailable, increasing risk. Share capital is minimal (£101), so internal capital injection potential is limited. The company should focus on improving liquidity to avoid cash flow shortfalls.

4. Monitoring Points:

• Net current asset position and working capital trends in upcoming accounts
• Accounts receivable aging and debtor collection efficiency
• Payment patterns to suppliers and creditor days
• Any changes in director or ownership structure
• Filing compliance and timeliness of statutory returns
• Potential growth in turnover and profitability to support debt servicing