PEGASUS FLAT ROOFING SOLUTIONS LTD

Executive Summary

Pegasus Flat Roofing Solutions Ltd exhibits a sound financial position for a micro-sized roofing contractor with improving net assets and positive working capital. The company’s liquidity appears sufficient to cover short-term obligations, supported by consistent compliance and stable management. While limited disclosure restricts full cash flow visibility, the credit risk is manageable with conservative exposure and ongoing monitoring of operational profitability and cash conversion.

PEGASUS FLAT ROOFING SOLUTIONS LTD - Analysis Report

Company Number: SC689290

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: APPROVE
   Pegasus Flat Roofing Solutions Ltd demonstrates a stable and positive financial position for a micro-entity, with net assets increasing from £22,378 in 2023 to £31,865 in 2024. The company shows an improving working capital position and no overdue filings, indicating good governance and compliance. While the company is relatively young and small-scale with only 2 employees, its current liquidity and equity levels support its ability to service short-term obligations. Given the absence of audit requirements and limited disclosure on profitability, credit exposure should remain conservative and monitored for consistent cash flow generation.

2. Financial Strength:
   The balance sheet shows improvement year-on-year with net current assets rising to £40,143 and net assets increasing by over 40% in 12 months. The company has no fixed assets as of 2024 (down from £2,266 in 2023), suggesting a possible asset disposal or minimal capital investment, which may reduce depreciation charges but also indicates limited asset backing. Shareholders’ funds of £31,865 represent retained earnings or equity injections beyond the nominal share capital of £2. The modest capital base is typical for a micro company, and the company remains solvent with liabilities well covered by current assets.

3. Cash Flow Assessment:
   Current assets of £119,030 against current liabilities of £78,887 provide a comfortable current ratio (approx. 1.5x), indicating sufficient liquidity to meet short-term liabilities. Net current assets of £40,143 suggest positive working capital management. Accruals and deferred income of £8,278 should be monitored as they reduce net assets but are normal for ongoing operations. However, no detailed cash flow statement or profit and loss data is available here, so ongoing cash generation cannot be fully assessed. The company’s ability to convert receivables and stock into cash in a timely manner is a key monitoring point.

4. Monitoring Points:

• Profitability trends: Since P&L data is not submitted for micro-entities, periodic management accounts or cash flows should be reviewed to confirm operational profitability and sustainable earnings.
• Working capital management: Continued focus on debtor collection and creditor payment terms is important to maintain liquidity.
• Asset base and capital expenditure: Watch for any significant changes in fixed assets that might impact depreciation or capital requirements.
• Director conduct and governance: The directors appear stable with no adverse records; continued oversight is advised.
• Market and industry conditions: Roofing activities can be sensitive to economic cycles and weather; monitoring order books and backlog is recommended.