P&P HOME IMPROVEMENTS LTD

Executive Summary

P&P Home Improvements Ltd exhibits improving financial health with solid liquidity and growing net assets. The company’s creditworthiness is supported by strong cash coverage of liabilities but constrained by limited financial transparency and its recent establishment. Conditional approval is recommended, contingent on regular monitoring of profitability and working capital management.

P&P HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 13115824

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   P&P Home Improvements Ltd demonstrates a modest but improving financial position with positive net assets and working capital. The company’s liquidity is adequate, supported by a strong cash balance relative to current liabilities. However, the company is relatively young (incorporated 2021) and small in scale, with limited fixed assets and a concentrated ownership structure. The absence of an audited profit and loss statement and the non-delivery of income statement information limits insight into profitability and cash generation trends. Approval is recommended subject to ongoing monitoring of profitability and trade creditor payment performance.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £431 in 2021 to £18,055 in 2025, indicating accumulation of retained earnings and capital strengthening. Current assets slightly decreased from £49,864 (2022) to £44,642 (2025), but cash remains strong at £41,471, nearly covering current liabilities of £32,498. Tangible fixed assets are minimal (£7,881), reflecting the nature of the glazing business which is not capital intensive. Shareholders’ funds are healthy relative to liabilities, suggesting limited leverage and good solvency. Provisions increased to £1,970, which should be clarified but do not appear to impair net asset strength materially.

3. Cash Flow Assessment:
   The company maintains a robust cash position relative to its short-term obligations, with net current assets of £12,144 in 2025, up from £10,646 in 2024. Cash covers approximately 127% of current liabilities, indicating good liquidity and working capital management. Debtor days appear short given modest trade debtors (£3,150) versus cash balances, which supports timely cash inflows. The payment of dividends to directors (£44,000 in 2025) suggests sufficient cash generation but warrants caution to ensure dividend policies do not impair operational liquidity.

4. Monitoring Points:

• Profitability and cash flow trends, as detailed income statements and cash flow statements are not filed.
• Changes in provisions and their nature to assess potential liabilities impacting financial stability.
• Trade creditor payment terms and any increases in trade creditors that could signal cash flow stress.
• Impact of director dividends on cash reserves and potential capital adequacy.
• Continued compliance with filing deadlines and any changes in director appointments or ownership structure.