MR K PLUMBING LTD

Executive Summary

MR K Plumbing Ltd shows a sound and improving financial position with strong working capital and growing equity. The company’s micro-entity scale and stable management support a low credit risk profile for its current operations. Continued monitoring of liquidity and governance is recommended to maintain credit confidence.

MR K PLUMBING LTD - Analysis Report

Company Number: 13520770

Analysis Date: 2025-07-20 14:39 UTC

1. Credit Opinion: APPROVE
   MR K Plumbing Ltd demonstrates a positive financial trajectory with increasing net current assets and shareholders' funds over the last two years. The company operates in a niche plumbing and HVAC installation sector with a stable single-director management structure. There is no evidence of overdue filings or legal distress, indicating sound compliance and governance. Given its micro-entity status, the financial scale is modest but improving, supporting its ability to meet short-term debt obligations.

2. Financial Strength:
   The balance sheet shows incremental growth in net assets from £1,039 in 2021 to £4,729 in 2024, reflecting steady capital retention and reinvestment. Fixed assets are limited (£1,230 in 2024) but adequate for the company’s operational scale. The company’s equity base remains positive and growing, with shareholders’ funds moving from £2,670 in 2023 to £4,729 in 2024, indicating retained earnings accumulation or capital injection. No long-term liabilities are visible, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets increased significantly from £5,793 in 2023 to £8,890 in 2024, while current liabilities rose moderately from £4,763 to £5,391. This improved working capital position (net current assets of £3,499 in 2024 vs. £1,030 in 2023) suggests enhanced liquidity and capacity to cover short-term obligations comfortably. The company maintains a positive cash flow buffer which supports operational continuity and debt servicing capability.

4. Monitoring Points:

• Monitor continued growth in net current assets to ensure liquidity is maintained as the business scales.
• Track profitability and cash flow generation given the micro-entity exemption from audit, which limits detailed financial scrutiny.
• Review any changes in director or ownership structure that could impact governance or control risk.
• Watch for any increases in liabilities or delayed filings that could signal emerging financial stress.