RENEWABLE PIPEWORK SOLUTIONS LTD

Executive Summary

Renewable Pipework Solutions Ltd is an early-stage micro-entity with very limited financial strength and no proven cash flow to support credit risk. The company’s balance sheet shows minimal net assets primarily financed by director advances, indicating a high risk profile. Credit approval is not recommended until the company demonstrates operational progress and financial stability through subsequent filings.

RENEWABLE PIPEWORK SOLUTIONS LTD - Analysis Report

Company Number: 14862687

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: DECLINE – Renewable Pipework Solutions Ltd is a newly incorporated micro-entity with minimal financial history and very limited net assets (£400). The company’s current financial position shows negligible working capital and no evidence of revenue generation or profitability to support debt servicing. As the sole director and controlling shareholder is also the listed plumber, the business appears to be a start-up with unproven operational and management track record. Given the lack of cash flow and financial depth, extending credit at this stage carries significant risk.

2. Financial Strength: The balance sheet reflects a very modest financial base with total current assets of £6,710 mainly representing advances to the director, offset by nearly equivalent current liabilities of £6,310, resulting in net current assets of only £400. Shareholder funds equal net assets at £400, indicating no retained earnings or accumulated reserves. The company has no fixed assets or tangible capital investment reported. This weak equity base and minimal net asset position provide limited financial buffer to absorb losses or support credit facilities.

3. Cash Flow Assessment: Liquidity appears constrained with current assets barely exceeding short-term liabilities by £400. The key component of current assets is advances to the director (£6,710), which may not be readily convertible to cash. No profit and loss information is available, but the absence of employees beyond the director and the lack of audit exemption detail suggests limited operational activity. Working capital is minimal, and the company’s ability to generate positive operating cash flow or service debt from earnings is unproven.

4. Monitoring Points:

• Future filing of full accounts including profit and loss statements to assess revenue generation and profitability trends.
• Changes in net current assets and shareholder funds to detect capital injections or asset acquisitions.
• Operational scale-up evidence such as hiring additional staff or securing contracts to indicate business viability.
• Monitoring director conduct and any changes in management or control structure.
• Timely filing of statutory returns to ensure compliance and transparency.