PEACH TREE FENCING AND LANDSCAPING LTD

Executive Summary

Peach Tree Fencing and Landscaping Ltd shows improving financial health with positive working capital and net assets growth over the last two years, supporting its ability to meet short-term obligations. The company is young and small, so while credit approval is recommended, it should be accompanied by regular monitoring of liquidity and trading performance to manage risk. Compliance and management appear sound, providing reasonable confidence in ongoing creditworthiness.

PEACH TREE FENCING AND LANDSCAPING LTD - Analysis Report

Company Number: 13181394

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: APPROVE with conditions. Peach Tree Fencing and Landscaping Ltd is a micro private limited company engaged in landscape service activities. The company’s financials show improving net assets and working capital from a negative position to a positive one over the last two years, indicating strengthening financial health. However, as a relatively young business (incorporated in 2021) with modest fixed assets and a small share capital (£100), its ability to sustain and grow cash flows under economic stress remains to be proven. Approval is recommended with monitoring of ongoing liquidity and trading performance before increasing credit exposure.

2. Financial Strength: The balance sheet demonstrates a positive trend. Fixed assets increased from £4,197 in 2023 to £11,384 in 2024, indicating some investment in equipment or property likely supporting operations. Current assets grew significantly from £29,495 to £44,419, while current liabilities rose moderately from £30,572 to £35,743. This improved net current assets from a deficit of £1,077 to a surplus of £8,676, improving working capital and short-term financial stability. Net assets increased substantially from £3,120 to £19,975, reflecting retained earnings or capital injections. Overall, the company has a solid micro-entity balance sheet with no signs of insolvency.

3. Cash Flow Assessment: Current assets exceed current liabilities, giving a net current asset (working capital) buffer of £8,676, which supports operational liquidity. The company has no overdue filings, suggesting good compliance and management discipline. With an average of 2 employees, operating costs are likely low, which may help conserve cash. However, the absence of a profit and loss account in the filings limits detailed cash flow analysis. The positive working capital and rising net assets imply improving cash generation, but continued monitoring of receivables and payables cycles is advised to confirm liquidity strength.

4. Monitoring Points:

• Track quarterly management accounts to verify continued improvement in cash flow and profitability.
• Monitor trade debtor aging and creditor payment terms to ensure working capital remains positive.
• Review capital expenditure plans relative to cash generation to avoid overextension.
• Watch for any director changes or PSC alterations that could affect governance or control.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance risk.