QF SCAFFOLDING LIMITED

Executive Summary

QF Scaffolding Limited is currently facing financial challenges characterized by negative net assets and significant liquidity pressures, undermining its ability to meet short-term liabilities. The company’s declining financial position and minimal operational indicators suggest elevated credit risk, leading to a recommendation to decline credit facilities at this stage. Close monitoring of working capital metrics and cash flow dynamics is essential for future reassessment.

QF SCAFFOLDING LIMITED - Analysis Report

Company Number: 13132880

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: DECLINE
   QF Scaffolding Limited demonstrates weakening financial health with a negative net asset position of £-2,647 as of January 2025, down from positive net assets in prior years. The company currently holds net current liabilities of £-10,839, indicating liquidity stress and potential difficulty in meeting short-term obligations. The absence of employees and minimal debtors suggest limited operational activity or revenue generation. The rapid deterioration in working capital and shareholders’ funds within a short operating history (incorporated 2021) raises concerns over ongoing viability and repayment capacity. Given these factors, approval for credit facilities is not recommended without substantial mitigating information or guarantees.

2. Financial Strength:
   The balance sheet shows a declining trend in net assets over the past three years, turning negative in 2025. Fixed assets have decreased slightly from £10,240 to £8,192, while current liabilities increased significantly to £21,529. The company’s equity base is eroded, with shareholders’ funds moving from £10,302 in 2022 to a deficit in 2025. The low share capital (£7) and lack of employee headcount further weaken financial resilience. The company operates in scaffolding erection, a trade requiring working capital for materials and labour; negative net current assets and rising creditors imply financial strain.

3. Cash Flow Assessment:
   Cash balances increased modestly from £7,193 in 2024 to £10,671 in 2025, but this is offset by a significant rise in current liabilities, especially other creditors (£22,269 in 2025 versus £769 in 2024), suggesting reliance on supplier credit or deferred payments. Minimal debtors (£19) imply limited receivables turnover, possibly reflecting low sales or delayed billing. Negative working capital combined with growing short-term creditors indicates constrained liquidity and potential difficulties in meeting immediate payment obligations, raising concerns over cash flow management.

4. Monitoring Points:

• Monitor net current assets and net asset position for further deterioration or improvement.
• Track creditor days and payment patterns to assess supplier confidence and liquidity pressures.
• Review turnover and debtor balances to evaluate revenue generation and collection efficiency.
• Observe any changes in director appointments or significant control that may affect governance.
• Watch for filing of full accounts or audit reports that may provide additional insight into financial performance.