Company Number: 15265279

Analysis Date: 2025-07-29 13:32 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Holme Contracting Ltd is a newly incorporated micro-entity (since November 2023) in the domestic construction sector. While the company shows positive net assets and working capital, its limited financial history and small scale operations necessitate close ongoing monitoring. The single director and sole shareholder, Mr. Mathew James O’Brien, appears to have full control and is likely hands-on in management, which is positive for accountability. However, the absence of a track record and minimal asset base constrain the credit risk appetite at this stage.

2. Financial Strength:
   As of 30 November 2024, the company reports:

• Fixed assets of £1,355, reflecting minimal investment in long-term resources.
• Current assets of £30,808 against current liabilities of £7,331, yielding a strong net current asset position of £23,477.
• Long-term liabilities of £10,200, resulting in net assets of £14,632.
• Shareholders’ funds equal net assets at £14,632, showing modest equity backing.
  Overall, the balance sheet is sound for a micro-business, with positive working capital and no apparent overleverage, but the company remains small and early stage.

3. Cash Flow Assessment:
   The company’s liquidity position appears adequate given net current assets of £23,477, indicating it can meet short-term obligations comfortably. No detailed cash flow statement is provided, but the positive working capital and low fixed asset base suggest manageable cash requirements. The single employee indicates low payroll burden, supporting positive cash flow dynamics. However, as a startup in construction, cash flow volatility can arise from project timings and payment delays, requiring prudent cash management.

4. Monitoring Points:

• Timely filing of subsequent accounts and confirmation statements to ensure compliance and transparency.
• Profitability trends and cash flow generation as trading history develops.
• Changes in debt levels, particularly long-term liabilities, and any increase in creditor balances.
• Management’s ability to secure contracts and maintain receivables collections efficiently.
• Any changes in control or director appointments which could impact governance.