PROTEUS BUILDING SERVICES LIMITED

Executive Summary

Proteus Building Services Limited has improved from prior net liabilities to a modestly positive net asset position, supported by increased cash and tangible assets. However, the company’s working capital is tight and hire purchase liabilities present repayment risks requiring close cash flow monitoring. Conditional credit approval is recommended, subject to continued financial discipline and management stability.

PROTEUS BUILDING SERVICES LIMITED - Analysis Report

Company Number: 13023516

Analysis Date: 2025-07-20 11:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Proteus Building Services Limited shows significant improvement in financial position from a negative net asset base in prior years to positive net assets of £51,166 as of June 2024. The company remains relatively small, operating in construction of domestic buildings, with recent growth supported by increased current assets and introduction of fixed assets. However, current liabilities remain high at £191,839 against current assets of £205,491, yielding a modest net current asset position of £13,652. The company has no bank loans or overdrafts but does have hire purchase liabilities, including £24,085 due after one year, which requires monitoring. Management changes occurred recently, which may impact continuity. Approval is conditional on continued positive cash flow and close monitoring of working capital and hire purchase commitments.

2. Financial Strength:
   The balance sheet shows a turnaround from prior years’ net liabilities (negative shareholder funds of £35k in 2023) to modest net positive equity of £51k in 2024. Fixed tangible assets of £61,599 provide some long-term asset backing. The company holds stocks valued at £27,500 and trade debtors of £86,322, indicating active sales but also moderate exposure to receivables risk. Current liabilities have increased substantially from £55k to £191k, largely driven by trade creditors and other creditors. The lack of bank borrowing reduces financial risk, but hire purchase obligations (£33,409 total) must be carefully managed. Overall, the financial strength is recovering but remains fragile given the scale and liabilities.

3. Cash Flow Assessment:
   Cash at bank has improved from £0 to £77,877 in the latest year, enhancing liquidity. The company’s working capital is positive but narrow (£13,652), suggesting limited buffer for short-term obligations. Debtors have increased significantly, so cash conversion cycles should be monitored closely to ensure timely collections. The presence of hire purchase contracts indicates reliance on external financing for fixed assets, requiring consistent operating cash flows to meet repayment schedules. No overdrafts or bank loans are reported, which is positive from a bank lending perspective.

4. Monitoring Points:

• Working capital trends and debtor collection periods to ensure liquidity is maintained.
• Hire purchase contract repayments and impact on cash flow going forward.
• Stability and continuity of senior management after recent director changes.
• Profitability trends once income statements are available (income statement not filed).
• Any changes in creditor terms or increases in short-term liabilities.
• Continuation of positive net asset growth to reduce financial fragility.