QPL PLASTERING & RENDERING LTD

Executive Summary

QPL Plastering & Rendering Ltd is an early-stage micro-entity with positive net assets but significant working capital deficiency, which presents liquidity risk. Credit approval is recommended on a conditional basis, pending evidence of cash flow stability or director support. Ongoing monitoring of liquidity metrics and compliance filings is essential to manage credit exposure prudently.

QPL PLASTERING & RENDERING LTD - Analysis Report

Company Number: 14811736

Analysis Date: 2025-07-29 13:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   QPL Plastering & Rendering Ltd is a newly incorporated micro-entity with limited financial history, which constrains the full assessment of its creditworthiness. The company shows positive net assets (£10,109) but has a significant mismatch between current assets (£515) and current liabilities (£19,206), indicating potential short-term liquidity pressure. The sizeable current liabilities relative to current assets raise concerns about the company's ability to meet short-term obligations without additional working capital or cash inflows. Given these factors, credit approval should be conditional upon further evidence of cash generation or support from directors to ensure timely debt servicing.

2. Financial Strength:
   The balance sheet reflects total fixed assets of £30,000 with minimal current assets. The net current liabilities position (-£18,691) is a weakness, suggesting working capital deficiency. However, net assets remain positive due to fixed assets, resulting in shareholder funds of £10,109. The company employs 2 people, consistent with its micro-entity classification and early-stage development. Overall, the company’s financial strength is modest but not critically weak, with risks focused on liquidity rather than solvency.

3. Cash Flow Assessment:
   The low current asset balance relative to current liabilities signals potential cash flow constraints. Without detailed cash flow statements, it is unclear how the company manages its payables or generates liquidity. The shortfall in working capital suggests reliance on ongoing cash inputs, likely from operations or director funding. Monitoring of cash flow patterns and payment punctuality will be necessary to mitigate credit risk.

4. Monitoring Points:

• Track current ratio and net working capital for improvement or deterioration.
• Monitor timely filing of accounts and confirmation statements to ensure compliance.
• Review director support or injections of funds that alleviate liquidity pressures.
• Watch for any increase in current liabilities or delayed payments to suppliers.
• Assess operational performance and revenue growth once available to gauge sustainability.