ND FIXING LTD

Executive Summary

ND FIXING LTD is a micro-entity in the construction sector showing modest growth in net assets and improved liquidity. The company’s financial position is currently stable but limited in scale, warranting conditional credit approval with prudent limits. Close monitoring of cash flow, working capital, and industry conditions is recommended to ensure ongoing creditworthiness.

ND FIXING LTD - Analysis Report

Company Number: 13194919

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ND FIXING LTD is a micro-entity active in the commercial building construction sector. The company has demonstrated modest growth in net assets from £1,982 in 2023 to £3,613 in 2024, indicating some improvement in financial position. However, the absolute size of net assets and current assets remains low, signaling limited financial buffer. The company’s ability to service debt is adequate given positive net current assets, but liquidity is tight with current assets of only £5,428 and current liabilities of £1,815. Approval for credit facilities could be considered with limits aligned to the scale of operations and with close monitoring of working capital and cash flow.

2. Financial Strength:
   The balance sheet shows a small but positive net asset position with shareholders’ funds increasing by 82% year-on-year to £3,613. Current liabilities have materially decreased from £5,981 to £1,815, improving liquidity ratios. The company maintains a positive net current asset position (£3,613), which supports short-term obligations. The share capital is minimal (£100), typical of small private companies. No long-term liabilities or fixed assets are reported, implying reliance on current operations and working capital management for financial stability.

3. Cash Flow Assessment:
   The company’s current assets (mainly cash and receivables) are sufficient to cover current liabilities, but the low absolute values highlight a limited cash cushion. The reduction in current assets from £7,963 in 2023 to £5,428 in 2024 alongside a significant decrease in current liabilities suggests improved creditor management or repayment. However, the small scale of operations and limited employee base (average 4 employees) mean cash flows could be sensitive to fluctuations in project schedules or customer payments. Working capital is positive but should be closely monitored to avoid liquidity strain.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to ensure continued coverage of short-term liabilities.
• Monitor receivables aging and creditor payment terms to avoid liquidity bottlenecks.
• Watch for any increase in current liabilities which could stress the tight balance sheet.
• Assess the impact of economic conditions on the construction sector and the company’s order book.
• Review management’s ability to maintain profitability and grow equity over time.