PRECAST FLOORING SPECIALIST CONTRACTORS LTD

Executive Summary

Precast Flooring Specialist Contractors Ltd shows strong financial growth and profitability since incorporation. The company maintains a healthy balance sheet with increasing net assets and manageable liabilities, supporting its capacity for debt service. Careful monitoring of receivables and cash flow is recommended to maintain liquidity amid ongoing business expansion.

PRECAST FLOORING SPECIALIST CONTRACTORS LTD - Analysis Report

Company Number: 13506104

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: APPROVE
   Precast Flooring Specialist Contractors Ltd demonstrates a strong and improving financial position with profitable operations and growing net assets. The company’s ability to generate consistent profits, evidenced by two consecutive years of significant profit, supports its capacity to service debt and meet commercial obligations. There are no overdue filings or indications of financial distress, and director and shareholder composition appears stable. However, the company is relatively young (incorporated 2021) and operates in a specialised construction niche, so monitoring market conditions and contract pipeline is advisable.

2. Financial Strength:
   The balance sheet shows solid improvement over the last two years. Net assets have increased from £30,680 in 2021 to £120,207 in 2024, mainly driven by retained earnings growth (£120,107). Fixed assets have doubled to £51,357, indicating reinvestment in plant and machinery, which supports operational capacity. The company maintains low levels of short-term liabilities (£32,164) relative to current assets (£101,014), resulting in a strong working capital position. Share capital is minimal (£100), typical for a private limited company, with equity entirely comprised of retained profits.

3. Cash Flow Assessment:
   Current assets are predominantly debtors (£99,685), with a low cash balance (£1,329) at year-end, suggesting that working capital is tied up in receivables and contract balances. The increase in amounts recoverable on contracts (£47,941) and debtors indicates ongoing project activity but also potential exposure to payment delays. Current liabilities are manageable and have decreased from prior year levels (£49,902 to £32,164), reflecting improved liquidity management. The company pays dividends (total £58,000 in 2024), which indicates confidence in cash flow but should be monitored relative to liquidity.

4. Monitoring Points:

• Debtor aging and collection efficiency, to ensure receivables do not become a liquidity risk.
• Contract pipeline and project completion rates, given the specialised construction sector reliance.
• Dividend payments versus cash flow, to maintain prudent liquidity reserves.
• Any changes in director or shareholder control that might affect governance or strategic direction.
• Economic conditions impacting construction demand and supply chain costs.