Company Number: 13099824

Analysis Date: 2025-07-20 16:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KOSFIX LIMITED is an active small private limited company operating in the construction of commercial buildings. The company shows modest but consistent revenue growth over the past three years and small positive operating profits. However, turnover and profit levels remain low, and the company has minimal working capital and net assets, reflecting very limited scale. The sole director is also the only employee, suggesting concentrated management risk. Given these factors, credit approval should be conditional, limited to modest facility sizes aligned with current cash flow, with close monitoring.

2. Financial Strength:
   The balance sheet is very lean. As of 31 December 2024, net assets stand at £1,023, up from £651 the previous year, indicating slight improvement. The company holds no fixed assets, and current assets consist solely of cash (£1,138). Current liabilities appear minimal with a small provision noted (£115). Share capital is nominal (£100). Overall, the financial base is weak with no tangible asset buffer to absorb shocks, and shareholder funds are minimal. This limits the company’s ability to absorb financial stress or support significant borrowings.

3. Cash Flow Assessment:
   Cash levels have decreased substantially from £6,786 in 2020 to £1,138 in 2024, indicating tight liquidity. However, the company maintains net current assets positive, albeit at a low level, which suggests limited working capital sufficiency. Operating profits are positive but marginal (£923 in 2024), which may constrain internal cash generation to support debt servicing. The company’s cash flow position is fragile and may be vulnerable to fluctuations in project payments or expenses.

4. Monitoring Points:

• Turnover and operating profit trends: watch for sustained growth or signs of margin compression.
• Cash and net current asset levels: any further deterioration could compromise liquidity.
• Timely filing of accounts and returns (currently up to date).
• Changes in director or management structure given reliance on a single individual.
• Any increase in liabilities or off-balance sheet exposures.
• Credit references or payment history with suppliers and subcontractors if accessible.