IC9 CONSTRUCTION LIMITED

Executive Summary

IC9 Construction Limited is a newly formed small construction entity with a positive but limited financial base and tight liquidity. Given its short operating history and small scale, credit exposure should be limited and closely monitored, especially regarding receivables and cash flow. Conditional approval is recommended with ongoing review of financial health and operational performance.

IC9 CONSTRUCTION LIMITED - Analysis Report

Company Number: 14627875

Analysis Date: 2025-07-29 15:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   IC9 Construction Limited is a recently incorporated private limited company (Jan 2023) operating in specialised construction and professional technical activities. Its first set of accounts shows modest but positive net current assets (£320) and shareholders’ funds (£320). However, the scale of operations is very small with limited financial history and minimal cash reserves (£123). The company’s ability to service debt obligations currently appears adequate but fragile, relying on tight working capital. Credit approval is recommended with conditions: limits on exposure, regular review of updated financials, and monitoring of receivables given the large debtor balance relative to cash.

2. Financial Strength:
   The balance sheet shows total current assets of £971, primarily debtors (£848), with current liabilities of £651, resulting in net current assets of £320. The company has no fixed assets reported. Shareholders’ funds stand at £320, reflecting the initial share capital (£100) and retained earnings (£220) from the first trading period. The financial position is lean but positive with no reported borrowings. The company’s small scale and short trading history limit the depth of financial strength, but there is no indication of insolvency risk at this stage.

3. Cash Flow Assessment:
   Cash on hand is low (£123), representing a small buffer. The large debtor balance relative to cash suggests potential liquidity risk if receivables are delayed or impaired. Current liabilities are modest (£651) but exceed cash by more than fivefold, meaning the company depends on timely collection of debtors to meet obligations. Working capital is positive but tight (£320), so cash flow management will be critical. There is no indication of external financing or overdrafts to support liquidity.

4. Monitoring Points:

• Timely collection of debtors and aging profile of receivables.
• Cash flow trends and ability to maintain positive working capital.
• Profitability progression in subsequent accounts to ensure retained earnings growth.
• Any increase in liabilities or borrowing that may stress liquidity.
• Director and related party transactions, particularly the £150 owed by the director and £598 owed by a related party, to ensure these do not impact cash flow adversely.
• Ongoing filing compliance and updated financial results for a comprehensive credit review.