Company Number: 12750232

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: APPROVE
   Haddenham Fencing Ltd demonstrates a solid and improving financial position with growing net assets and strong working capital. The company is small and relatively new (incorporated in 2020) but shows consistent growth in net assets from £20,355 in 2020 to £49,681 in 2024. No overdue filings or signs of distress are evident, and the sole director appears stable and compliant. The micro-entity status limits available financial detail, but the data indicates prudent financial management and sufficient liquidity to meet short-term obligations.

2. Financial Strength:
   The balance sheet indicates a healthy financial base. Fixed assets are minimal (£1,845 in 2024), which is typical for a service-oriented SME. Current assets have increased substantially from £27,836 in 2020 to £53,044 in 2024, while current liabilities remain low and manageable (£5,208 in 2024). This results in strong net current assets of £47,836, reflecting good working capital. Shareholders’ funds have more than doubled, signaling retained earnings accumulation and no apparent reliance on external debt financing.

3. Cash Flow Assessment:
   Liquidity appears very strong given the large net current assets compared to current liabilities. Cash or equivalents are likely a significant part of current assets, supporting good short-term payment capacity. The company’s small scale and micro-entity filing status mean detailed cash flow statements are unavailable, but the consistent growth in working capital and equity suggests positive operational cash flows. The absence of long-term liabilities reduces financial risk.

4. Monitoring Points:

• Maintain strong working capital management to support ongoing operational needs.
• Watch for any sudden increases in current liabilities or reduction in cash balances that could impact liquidity.
• Monitor director’s conduct and company filings to ensure continued regulatory compliance.
• Track revenue growth and profitability trends when available in future accounts to assess sustainability.
• Assess any changes in the competitive landscape or industry risks within the home and garden equipment repair sector.