PRO SOUTH EAST LTD

Executive Summary

Pro South East Ltd shows initial financial stability with positive net current assets and cash balances sufficient to cover current liabilities. However, as a newly formed company with a modest equity base, credit approval should be conditional on ongoing positive trading and close monitoring of liquidity and working capital management. Continued operational performance and timely filings will be key indicators for credit risk going forward.

PRO SOUTH EAST LTD - Analysis Report

Company Number: 14355346

Analysis Date: 2025-07-29 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Pro South East Ltd is a newly incorporated private limited company (since Sept 2022) operating in a niche construction segment (SIC 43999). The latest accounts to January 2024 show positive net current assets and shareholders' funds, indicating initial financial stability. However, the company is young with limited financial history and modest net assets (£14,197). Current liabilities (£68,219) are largely offset by current assets (£81,718), but the liquidity cushion is relatively thin. Given the early stage and limited track record, credit approval should be conditional on continued positive trading performance and monitoring of working capital.

2. Financial Strength
   The balance sheet reflects a small but positive net asset position of £14,197, with tangible fixed assets of £931. The company holds cash balances of £67,735, which form the bulk of current assets alongside debtors of £13,983. Current liabilities stand at £68,219, mainly trade creditors and tax liabilities. Net current assets of £13,499 suggest the company can meet short-term obligations presently. Shareholder funds consist primarily of retained earnings (£14,097), signaling some initial profitability or capital injection despite its short operating period.

3. Cash Flow Assessment
   Cash at bank of £67,735 is a strong liquidity indicator relative to current liabilities of £68,219, suggesting near-term obligations can be met without difficulty. Debtors (£13,983) provide additional working capital support, but the company must manage collections efficiently. The company reported an average employment of 10 staff, implying payroll as a significant recurring outflow. With limited fixed assets and no audit requirement, cash flow statements are not provided, so ongoing monitoring of cash generation is essential.

4. Monitoring Points

• Turnover and profitability trends in upcoming accounts to gauge business growth.
• Timely payment of tax and social security liabilities, as these make up a significant part of current liabilities.
• Debtor aging and cash collection efficiency to ensure adequate liquidity.
• Any material increase in creditors or provisions that could strain working capital.
• Management’s ability to sustain operations and generate positive cash flow as the company scales.