Company Number: SC705978

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. PT Glazing Group Limited is a micro-entity operating in the glazing industry with a short trading history since incorporation in 2021. The company has demonstrated improvement in net assets from a negative position in 2023 (-£427) to a positive £19,127 in 2024, indicating some financial recovery. However, the company shows a net current liability position in 2024 (-£1,881), which signals potential liquidity pressure. The presence of long-term creditors (£15,675) also suggests ongoing debt obligations. The trade credit risk is moderate given the small scale and relatively thin equity base, but management appears stable with multiple directors and diversified ownership. Credit extension should be cautious with monitoring of liquidity and repayment capacity.

2. Financial Strength: The balance sheet shows fixed assets of £36,683 and current assets of £81,561 against current liabilities of £83,442, resulting in a net current liability position of -£1,881 at the end of 2024. This represents a deterioration from prior years when net current assets were positive, possibly reflecting increased short-term borrowing or payables. Total net assets are positive at £19,127, but relatively modest, indicating limited cushion against unexpected losses. The company’s leverage includes creditors due after more than one year of £15,675, which is a notable non-current liability for a micro business. Overall, the financial strength is currently fragile but improving compared to the prior year.

3. Cash Flow Assessment: Current liabilities slightly exceed current assets, indicating working capital strain and potential cash flow tightness. The decrease in net current assets from £22,036 in 2023 to -£1,881 in 2024 suggests worsening liquidity. The increase in average employees from 3 to 5 in 2024 could imply higher operating expenses. There is no detailed cash flow statement, but the balance sheet position implies that the company may be relying on external financing (creditors) to fund short-term operations. Monitoring of cash conversion cycle, debtor collections, and creditor terms is essential to assess ongoing liquidity.

4. Monitoring Points:

• Liquidity metrics: Current ratio and net working capital trends to ensure sufficient short-term funds.
• Debt servicing ability: Timely repayment of both short and long-term creditors.
• Profitability and cash flow generation from operations: To improve equity base and reduce reliance on external credit.
• Management actions to improve cash collection and control cost base, especially given increased headcount.
• On-time filing and compliance with Companies House deadlines (currently up to date).
• Market conditions in the glazing sector and impact on order book and pricing.