NUOVA HOME IMPROVEMENTS LTD

Executive Summary

Nuova Home Improvements Ltd is a newly established micro-entity with modest capital but negative working capital, indicating liquidity risk. While the business is in an early growth phase with committed directors, credit exposure should be limited and closely monitored. Approval is conditional pending improvement in liquidity and operating performance.

NUOVA HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 15435940

Analysis Date: 2025-07-20 15:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Nuova Home Improvements Ltd is a recently incorporated micro-entity operating in the construction installation sector. Its small scale and early stage of operations limit the financial history available for assessment. The company shows a positive net asset position (£2,176) but has negative net current assets (£-930), indicating a working capital deficiency. As a startup with minimal fixed and current assets, it carries some liquidity risk. While the director’s background in building and the presence of two shareholders with control over voting and shares suggest committed management, the lack of profitability and working capital shortfall call for cautious credit exposure. Conditional approval is recommended with limits tied to close monitoring and possibly shorter credit terms or guarantees.

2. Financial Strength:
   The balance sheet shows total fixed assets of £3,106 and current assets of £3,713 against current liabilities of £4,643, resulting in net current liabilities of £930. Net assets and shareholders’ funds stand at £2,176, reflecting initial capital investment but no retained earnings or reserves. The company’s micro-entity status and early stage mean limited financial depth. The capital base is thin, and working capital is negative, indicating reliance on external funding or owner support to meet short-term obligations.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, signifying potential liquidity constraints. Cash flow is likely tight given the negative working capital position and absence of cash or equivalents disclosure. The company’s ability to generate positive operating cash flow remains unproven. The director’s involvement and small team size (2 employees) may help control costs, but the company should be monitored for timely payment of creditors and supplier relationships.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios over the next accounting period.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Evidence of revenue growth and profitability to build retained earnings.
• Stability and conduct of directors and PSCs, with no adverse changes or disqualifications.
• Cash flow statements or management accounts if available, to verify operational cash generation.
• Any material changes in working capital structure or financing arrangements.