Company Number: 13916086

Analysis Date: 2025-07-29 19:03 UTC

Credit Opinion:
APPROVE with conditions. Redhot Gas Services Ltd is a recently incorporated small private limited company operating in plumbing, heating, and air-conditioning installation. It shows improving financial metrics with positive net current assets and shareholders' funds increasing year on year. However, given its very early stage of trading and limited financial history, credit exposure should be modest and subject to ongoing review.

Financial Strength:
The balance sheet as of 29 February 2024 shows total assets less current liabilities of £12,345, up from £8,837 the previous year, indicating growth. Tangible fixed assets are £6,750, reflecting investment in plant and machinery. The company holds net current assets of £5,595, an improvement from net current liabilities last year. Shareholders' funds increased from £8,838 to £12,345, driven by retained earnings accumulation. The company operates with minimal debt and modest capital, typical for a micro/small business.

Cash Flow Assessment:
Cash balances improved substantially to £7,105 from zero last year, enhancing liquidity. Debtors of £1,090 are relatively low, suggesting limited credit risk from receivables. Current liabilities increased to £2,600, largely due to taxation and social security obligations (£2,031), which may require monitoring to ensure timely payment. The working capital position is positive and improving, indicating the company has adequate short-term resources to meet immediate obligations.

Monitoring Points:

• Maintain focus on cash flow management, especially tax and social security liabilities which have increased sharply.
• Monitor debtor days and collections closely to ensure continued liquidity.
• Observe profitability trends as information is limited; absence of an income statement requires verification of sustainable earnings going forward.
• Track capital expenditure and fixed asset utilization given the investment in tangible assets.
• Review director's loans and any intercompany advances for potential impact on liquidity.