HIGHWAY SOLUTIONS SW LTD

Executive Summary

Highway Solutions SW Ltd has demonstrated a positive financial trajectory with improved liquidity and net asset growth within two years of operation. The company’s balance sheet strength and healthy working capital position support a positive credit decision. Continued monitoring of cash flow and operational performance is recommended to ensure ongoing creditworthiness.

HIGHWAY SOLUTIONS SW LTD - Analysis Report

Company Number: 14244007

Analysis Date: 2025-07-29 14:45 UTC

1. Credit Opinion: APPROVE
   Highway Solutions SW Ltd, a micro private limited company incorporated in 2022, shows a strong improvement in financial position over its first two years of trading. The company has transitioned from a negative working capital position in 2023 to a positive and healthy net current asset position in 2024, signaling improved liquidity and operational efficiency. The net assets have grown substantially from £115,986 to £296,098, reflecting retained earnings or capital injections. No overdue filings or signs of financial distress are evident. The director’s report and exemption from audit are consistent with the company's micro-entity status. Overall, the company demonstrates adequate capacity to service short-term liabilities and potential credit facilities.

2. Financial Strength:
   The balance sheet at 30 September 2024 shows fixed assets of £145,958 and current assets of £395,584 against current liabilities of £228,544, yielding net current assets of £167,040. Total net assets stand at £296,098, up from £115,986 the prior year. This growth indicates enhanced capitalisation and financial stability. The company maintains positive shareholders’ funds, which fully cover liabilities, providing a cushion against downturns. The capital structure appears sound for a micro entity, with no indication of excessive leverage or accumulated losses.

3. Cash Flow Assessment:
   A significant swing from negative net current assets (£-8,853) in 2023 to positive (£167,040) in 2024 suggests improved cash flow management and working capital optimisation. The current asset base, likely including cash and receivables, comfortably exceeds short-term liabilities, implying adequate liquidity to meet operational needs and debt servicing. However, detailed cash flow statements are not provided; continued monitoring of cash conversion cycles and debtor collection will be important to confirm sustained liquidity.

4. Monitoring Points:

• Maintain scrutiny on working capital trends to ensure liquidity remains robust, especially given the company’s young age and small scale.
• Watch for any significant changes in current liabilities that could affect short-term liquidity.
• Monitor turnover growth and profitability to assess ability to generate sustainable cash flow.
• Confirm timely filing of accounts and statutory returns to avoid regulatory penalties.
• Review director conduct and governance as the company grows, though no issues are currently evident.