M GILES BUILDING CONTRACTS LIMITED

Executive Summary

M GILES BUILDING CONTRACTS LIMITED is a newly established micro-entity with a sound initial financial position and positive net assets. The company appears capable of meeting its short-term obligations and managing modest credit facilities. Close monitoring of cash flow and trading performance is recommended to confirm ongoing repayment capacity as the business develops.

M GILES BUILDING CONTRACTS LIMITED - Analysis Report

Company Number: 14722464

Analysis Date: 2025-07-20 16:00 UTC

1. Credit Opinion: APPROVE
   M GILES BUILDING CONTRACTS LIMITED is a recently incorporated micro-entity operating in the development of building projects. The company demonstrates a positive net asset position with net current assets of £11,208 and total net assets of £22,724 at its first year end. The director, Matthew Giles, owns 75-100% of shares and voting rights, indicating strong control and likely commitment. Although the company is at an early stage, its financial position and absence of overdue filings or liabilities suggest it can meet short-term obligations. Approval is recommended for modest credit facilities, subject to monitoring initial trading performance to confirm ongoing cash flow sufficiency.

2. Financial Strength:
   The balance sheet shows fixed assets of £11,516 and current assets of £73,328, mainly comprising cash and receivables. Current liabilities total £62,469, leaving net current assets of £11,208. The company is free from long-term debt and provisions, resulting in net assets of £22,724. This equity base is appropriate for a micro-entity in its first year. The absence of accumulated losses or overdraft indicates prudent financial stewardship by management. The relatively low asset base and small scale imply limited financial depth but no immediate solvency concerns.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by approximately £11k, suggesting a positive working capital position. With an average of 2 employees and no reported off-balance sheet liabilities, operating expenses are likely modest. The timing of receivables and payables will be critical to maintaining liquidity given the close balance between current assets and liabilities. No overdrafts or short-term borrowings are reported, indicating operations have so far been funded without external credit. This positions the company well to service small credit lines, but cash flow should be closely monitored as trading scales.

4. Monitoring Points:

• Quarterly review of cash flow forecasts to ensure working capital remains positive as the business grows.
• Tracking debtor aging and creditor payment terms to avoid liquidity strain.
• Monitoring contract pipeline and revenue recognition to confirm sustainable income generation.
• Ensuring timely filing of annual accounts and confirmation statements to maintain regulatory compliance.
• Watch for any director or ownership changes that could impact governance or financial control.