Company Number: 13525567

Analysis Date: 2025-07-20 18:58 UTC

1. Credit Opinion: APPROVE with conditions. Level Brickwork Ltd demonstrates positive net assets and working capital, indicating the ability to meet short-term obligations. However, as a micro-entity with a single employee and limited turnover, the business scale and financial buffer are modest. Approval should be contingent upon monitoring continued revenue growth and maintaining liquidity.

2. Financial Strength: The company’s net assets increased from £1,441 in 2023 to £7,074 in 2024, showing strengthening equity base. Current assets rose substantially to £21,571, while current liabilities increased but remained well covered, resulting in net current assets of £7,624. The balance sheet is simple with no fixed assets reported, typical for a micro entity in development of building projects. The shareholders’ funds reflect sole control by the director, indicating concentrated ownership but also direct accountability.

3. Cash Flow Assessment: Working capital is positive at £7,624, up from £1,996 the prior year, indicating improved liquidity. However, absolute cash balances are relatively low, suggesting limited cash reserves to absorb shocks. The increase in current liabilities from £1,674 to £15,070 signals some growth in short-term obligations that should be watched closely. Given the company’s size, cash flow volatility is likely, so maintaining prompt receivables collection and managing payables is critical.

4. Monitoring Points:

   • Revenue growth trajectory and ability to increase turnover beyond £110k.
   • Stability or reduction in current liabilities to maintain healthy working capital.
   • Timely filing of accounts and confirmation statements (currently up to date).
   • Director’s management of cash flow given limited financial reserves.
   • Any expansion in employee base or fixed assets that may require additional financing.