NEEDHAM'S JOINERY AND BUILDING LTD

Executive Summary

Needham’s Joinery and Building Ltd is a small but financially stable construction company with improving net assets and positive working capital. The business demonstrates sound financial stewardship under a single director with strong control and no overdue filings. It is recommended for credit approval with standard monitoring of liquidity and filing compliance given its micro-entity status and limited operational scale.

NEEDHAM'S JOINERY AND BUILDING LTD - Analysis Report

Company Number: 13659051

Analysis Date: 2025-07-29 13:22 UTC

1. Credit Opinion: APPROVE
   Needham’s Joinery and Building Ltd demonstrates a stable and improving financial position for a micro-entity in the construction sector. The company’s net assets have increased steadily from £2,722 in 2021 to £11,804 in 2024, indicating retained earnings and capital growth. The absence of overdue filings and the director’s direct control further support credit reliability. Given the small size and limited complexity, the credit risk is low, and the company appears capable of servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£6,229 in 2024) and a healthy current asset base (£12,217), predominantly working capital. Current liabilities have decreased from £8,846 in 2023 to £6,642 in 2024, improving liquidity. Net current assets rose from £4,950 to £5,575, providing adequate short-term coverage. No long-term liabilities or provisions are reported, simplifying the financial structure. Shareholders’ funds increased by 15% year-on-year, reflecting retained profits or capital injection.

3. Cash Flow Assessment:
   While detailed cash flow data is not provided, the net current asset position indicates positive working capital management. The company employs only one staff member (the director), so payroll obligations are minimal. The reduction in current liabilities alongside stable current assets suggests reasonable liquidity. However, as a micro business in construction, cash flow may be project-dependent and potentially volatile. Monitoring payment terms with suppliers and clients is recommended to ensure ongoing liquidity.

4. Monitoring Points:

• Maintain timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Monitor trade debtor and creditor days to manage cash flow in a project-based business.
• Watch for any significant increases in current liabilities or fixed asset acquisition that could strain liquidity.
• Track profitability trends in subsequent accounts to confirm continued growth and debt servicing capacity.
• Review director’s credit conduct and any external credit references if credit exposure increases.