PAGUDA CARPENTRY AND SPRAY LTD

Executive Summary

PAGUDA CARPENTRY AND SPRAY LTD demonstrates early signs of financial recovery with positive net assets after prior negative balances, but remains a very small micro-entity with limited operational scale. Credit approval is feasible on a conditional basis with modest facility limits and close monitoring due to limited financial depth and cash flow visibility. Ongoing review of liquidity and operational performance is critical to mitigate risk.

PAGUDA CARPENTRY AND SPRAY LTD - Analysis Report

Company Number: 13241185

Analysis Date: 2025-07-20 17:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL PAGUDA CARPENTRY AND SPRAY LTD is a very small micro-entity with limited financial history, incorporated in 2021. The company has shown a significant turnaround in net current assets and net assets in its latest financial year ending March 2024, moving from negative net liabilities to positive net assets (£6,241). While this improvement is promising, the absolute size of the balance sheet and working capital remains modest, reflecting a very small operational scale. Given the absence of employees and limited financial depth, credit exposure should be conservative and closely monitored. Approval for credit facilities may be considered with conditions such as modest limits, short terms, and regular financial review.

2. Financial Strength: The company’s balance sheet improved from a net liability position of £8 in 2023 to a net asset position of £6,241 in 2024, supported primarily by current assets of £9,689 against current liabilities of £3,448. Share capital is nominal at £2. The net asset base remains modest, indicating limited collateral value and financial cushioning. The company has no fixed assets reported, suggesting a lack of tangible security. The financial trajectory is positive but still at a nascent stage, with limited scale and no reported employees.

3. Cash Flow Assessment: Current assets primarily reflect cash or equivalents but are modest in absolute terms. Net current assets of £6,241 indicate positive working capital, which supports short-term liquidity. However, no detailed cash flow statement is available, and the absence of employees may imply minimal operating expenses but also limited revenue-generating capacity. The company’s ability to generate consistent cash flow and service debt depends heavily on the director’s management and operational activity. Close attention to ongoing cash receipts and payables management is essential.

4. Monitoring Points:

• Track quarterly financial updates to observe maintenance or improvement of positive working capital.
• Monitor any growth in turnover or operational scale as this will impact repayment capacity.
• Review director’s credit conduct and any changes in company structure or control.
• Watch for timely filing of accounts and confirmation statements to ensure compliance.
• Assess impact of any new liabilities or capital injections on financial stability.