L AND R ROBERTS RENOVATIONS LTD

Executive Summary

L and R Roberts Renovations Ltd demonstrates a fragile financial position with negative net assets and working capital challenges typical for a micro company in its early years. While the business remains active and filings are up to date, credit exposure should be limited and conditioned on additional security or positive cash flow projections. Ongoing liquidity and debt servicing ability require close monitoring to mitigate credit risk.

L AND R ROBERTS RENOVATIONS LTD - Analysis Report

Company Number: 13727754

Analysis Date: 2025-07-29 18:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   L and R Roberts Renovations Ltd is a micro private limited company engaged in real estate letting and building finishing activities. The company shows a very recent trading history (incorporated Nov 2021) with little operational scale (1 employee). The latest accounts indicate a marginally negative net asset position (£-5,715) due to a new long-term creditor (£110,000) added this year, which has removed prior positive net assets (£3,833). The company’s current liabilities slightly exceed current assets, resulting in negative working capital. While the business is not in liquidation and remains active, the weak balance sheet and negative working capital suggest some risk in its ability to meet short-term obligations without additional cash inflows or refinancing. Credit approval could be considered if strong personal guarantees or additional collateral are provided and if ongoing cash flow forecasts demonstrate the ability to cover debt service.

2. Financial Strength
   The fixed asset base is modest (£111k), largely unchanged over two years. Current assets improved significantly this year from £5.4k to £126.4k, likely cash or receivables, but current liabilities also rose to £133.3k, resulting in a small net current liability of £6.9k. The addition of a £110k creditor due after one year has pushed net assets into negative territory. The balance sheet overall is weak with negative equity, reflecting either accumulated losses or capital withdrawals offset by long-term debt. This indicates limited financial resilience and a dependence on external funding or directors' support.

3. Cash Flow Assessment
   The company’s net current liability position indicates working capital constraints, which may impact day-to-day liquidity. The sharp increase in current assets this year is a positive sign but is offset by similarly increased current liabilities and a significant long-term creditor. No detailed cash flow statement is provided, so it is unclear if the company generates positive operating cash flow. Given the micro size and single employee, the business likely has low overheads but may rely heavily on timing of receivables and payables. Close monitoring of cash conversion cycles and creditor terms is essential.

4. Monitoring Points

• Track quarterly cash flow and working capital trends to ensure liquidity remains adequate.
• Monitor the status and repayment schedule of the £110k long-term creditor to assess refinancing risk.
• Watch for changes in net asset position, especially if losses continue or additional debt is taken on.
• Review directors’ financial support or guarantees, given the weak equity base.
• Confirm timely filing of future accounts and confirmation statements to assess management compliance and governance.