LAYMAN COST MANAGEMENT SERVICES LTD

Executive Summary

LAYMAN COST MANAGEMENT SERVICES LTD is a very small, newly established quantity surveying firm with a positive but limited financial base. It currently demonstrates adequate liquidity and compliance but lacks an operational track record and scale to fully mitigate credit risk. Credit approval is suitable with restrictions on exposure and ongoing financial monitoring.

LAYMAN COST MANAGEMENT SERVICES LTD - Analysis Report

Company Number: 14364078

Analysis Date: 2025-07-29 16:54 UTC

1. Credit Opinion: APPROVE with conditions

LAYMAN COST MANAGEMENT SERVICES LTD is a recently incorporated micro-entity specializing in quantity surveying activities. The company has filed up-to-date accounts and confirmation statements with no overdue filings, reflecting compliance discipline. The net assets of £4,727 indicate a modest but positive equity base. However, as a micro company with minimal operating history (just over one year), limited financial data and a single employee, there is inherent risk due to lack of financial track record and scale. Approval is recommended with conditions such as limiting the credit exposure to a low amount initially, requiring regular financial updates, and monitoring contract and cash flow stability closely.

2. Financial Strength:

The company’s balance sheet as of 30 September 2023 shows current assets of £6,772 and current liabilities of £2,797, yielding net current assets (working capital) of £4,727. There are no long-term assets or liabilities reported. Shareholders’ funds equal net assets at £4,727, indicating no external borrowings or accumulated losses. The financial position is stable but very modest in scale. The absence of fixed assets or tangible collateral limits security value for lending.

3. Cash Flow Assessment:

Current assets primarily consist of cash and receivables with no indication of stock or significant prepayments. The positive working capital suggests the company can meet short-term obligations. However, given the minimal size and limited operating history, cash flow volatility risk is elevated. The single director and employee structure implies low overhead costs but also limited capacity for business continuity if the director is unavailable. Close monitoring of cash inflows from client payments and timely settlement of trade payables is essential.

4. Monitoring Points:

• Regular review of updated management accounts and cash flow forecasts to assess operational performance.
• Watch for any increase in current liabilities or overdue payables that may signal liquidity stress.
• Monitor contract wins and pipeline to evaluate revenue growth potential.
• Director and ownership stability, as the company is controlled entirely by one individual.
• Timely filing of statutory accounts and confirmation statements to ensure compliance.