Company Number: 12615532

Analysis Date: 2025-07-29 12:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Matrix Builders Ltd demonstrates a small but improving net asset position and appears operationally active with recent filings up to date. However, the sharp increase in current liabilities in 2024 relative to current assets raises concerns over short-term liquidity and working capital management. The company’s micro-entity status and limited history suggest cautious credit exposure with conditions such as close monitoring of liquidity and timely payment performance.

2. Financial Strength:
   The company’s net assets have grown from £1 in 2020 to £7,015 in 2024, indicating some retained earnings or equity injection. Fixed assets increased to £21,012 in 2024 from zero previously, suggesting capital investment. However, the 2024 balance sheet shows current liabilities of £17,580 exceeding current assets of £3,583, resulting in a negative net current asset position of -£13,997. This indicates potential short-term solvency pressure despite positive overall net assets.

3. Cash Flow Assessment:
   Current liabilities have surged sharply in 2024 versus prior years, while current assets have decreased, signaling cash flow strain or increased short-term obligations. The absence of detailed cash flow statements makes precise liquidity assessment difficult, but the negative working capital in 2024 is a red flag. The company’s ability to meet immediate liabilities from available current assets appears weakened, necessitating scrutiny of payment cycles and cash generation.

4. Monitoring Points:

• Watch changes in current assets and current liabilities to ensure working capital remains positive or improves.
• Monitor cash flow statements once available for operating cash generation and debt servicing capacity.
• Track timely filing of accounts and confirmation statements to avoid compliance risks.
• Review any changes in director or ownership that might affect governance and credit risk.
• Evaluate profitability and retained earnings trends in future filings to gauge sustainability.