NE BUILDING AND MAINTENANCE LTD

Executive Summary

NE Building and Maintenance Ltd is a newly established company with a modest asset base but a relatively high level of long-term liabilities compared to equity. While current liquidity appears adequate, the company's limited trading history and financial leverage warrant a cautious credit approach with conditional approval subject to further financial monitoring. Close attention should be given to cash flow management and debt servicing capacity as the business develops.

NE BUILDING AND MAINTENANCE LTD - Analysis Report

Company Number: 14848408

Analysis Date: 2025-07-29 20:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NE Building and Maintenance Ltd is a recently incorporated SME operating in the furniture repair sector. The company shows a positive net asset position but with significant long-term creditors relative to equity. Given its early stage and limited financial history, credit approval should be conditional on obtaining additional information on cash flow forecasts, payment terms with customers and suppliers, and any guarantees or collateral securing the outstanding long-term liabilities. Close monitoring is recommended until a longer operating track record is established.

2. Financial Strength:
   The company’s balance sheet as of 31 May 2024 shows:

• Fixed Assets: £6,640 (net of depreciation) mainly in plant and machinery, indicating investment in operational capacity.
• Current Assets: Cash £3,651 with no reported debtors or stock.
• Current Liabilities: £1,200, resulting in positive net current assets of £2,451, demonstrating adequate short-term liquidity.
• Non-current Liabilities: £8,669, significantly exceeding shareholders' funds of £422. This suggests leverage and potential pressure on solvency if cash flows are insufficient.
  Overall, the financial position is fragile due to low equity and sizable long-term creditors, typical for a startup but posing credit risk.

3. Cash Flow Assessment:
   Cash on hand is modest at £3,651 against current liabilities of £1,200, implying the company can meet near-term obligations. However, absence of reported trade debtors or inventory limits visibility on working capital cycle and operational cash generation. The average employee count is nil, suggesting minimal payroll burden but also limited revenue generation capacity so far. Cash flow forecasts and detailed working capital analysis are necessary to confirm ongoing liquidity.

4. Monitoring Points:

• Quarterly review of cash flow and liquidity position
• Status and aging of trade receivables and payables
• Servicing and maturity profile of long-term creditors (£8,669)
• Progress in revenue generation and profitability
• Any changes in director or ownership structure
• Compliance with filing deadlines and statutory obligations