Company Number: 13806928

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: APPROVE
   Gasfix Midlands Limited shows solid improvement in financial position over the last two years, with net assets increasing from £6,018 to £19,701 and net current assets rising significantly. The company is micro-sized with limited liabilities and a single director/owner, which simplifies control and oversight. There are no overdue filings or signs of financial distress. Given the company's positive working capital and clean compliance record, it appears capable of managing reasonable credit facilities. However, the small scale and single employee base warrant cautious credit limits and ongoing monitoring.

2. Financial Strength:
   The balance sheet shows a healthy upward trend. Fixed assets are minimal (£1,500), which is typical for this sector and micro category. Current assets increased markedly to £42,681, driven likely by cash or receivables, while current liabilities are modest at £14,940. Net current assets improved from £4,788 (2023) to £27,741 (2024), reflecting strong liquidity improvement. The company’s net assets rose over threefold to £19,701, indicating retained earnings accumulation and a strengthening equity base. The accruals and deferred income rose from £1,020 to £9,540, which should be reviewed but do not currently impair net assets.

3. Cash Flow Assessment:
   The significant increase in current assets relative to liabilities suggests improved liquidity and working capital management. The company is not over-leveraged and has a positive working capital buffer, which supports short-term obligations and operational cash flow needs. The micro-entity status means detailed cash flow statements are not provided, but the balance sheet indicates sufficient liquidity. The single director/owner control likely ensures tight cash flow oversight, reducing risks of mismanagement.

4. Monitoring Points:

• Monitor the increase in accruals and deferred income (£9,540) to ensure these are legitimate and not masking liabilities.
• Track ongoing cash flow and receivables turnover to confirm sustained liquidity.
• Watch for any changes in director or ownership that may affect control or financial stewardship.
• Keep an eye on business growth and whether the micro classification remains appropriate or if scaling requires reassessment of credit terms.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance risks.