Company Number: 13117154

Analysis Date: 2025-07-19 13:05 UTC

1. Credit Opinion: APPROVE
   Raystell Ltd demonstrates a solid financial position for a micro entity with no overdue filings, positive net current assets, and consistent growth in net assets over the last three years. The company’s ability to maintain liquidity and grow equity from £2,276 in 2021 to £16,570 by 2024 supports a positive credit stance. The single director’s ongoing oversight and absence of any adverse legal or insolvency indicators further strengthen confidence in management.

2. Financial Strength:
   The balance sheet shows steady improvement. Fixed assets are modest (£1,446 in 2024), typical for a small construction-related business, while current assets nearly doubled from £11,048 in 2023 to £21,497 in 2024. Current liabilities remain relatively low and manageable at £6,373, resulting in net current assets of £15,124—a healthy working capital position for the size of the company. Shareholders’ funds have more than doubled from £7,427 to £16,570, indicating retained earnings or capital injections supporting growth.

3. Cash Flow Assessment:
   The increase in current assets relative to liabilities suggests good short-term liquidity, implying the company can meet its near-term obligations without distress. The working capital ratio (current assets to current liabilities) is approximately 3.37 in 2024, which is strong. However, detailed cash flow statements are not provided, so it is advisable to confirm operating cash flow stability. The low number of employees (1) limits fixed overheads, reducing cash flow pressure.

4. Monitoring Points:

• Monitor the company’s ability to maintain or improve net current assets as it scales, especially since the construction sector can be cyclical.
• Watch for timely filing of future accounts and confirmation statements to avoid compliance risk.
• Review any changes in director or ownership structure that could affect governance or financial control.
• Confirm that receivables and payables remain well-managed to sustain working capital.
• Observe any external economic conditions impacting civil engineering projects that could affect turnover or margins.