RISE ABOVE CARPENTRY & BUILDING LTD

Executive Summary

Rise Above Carpentry & Building Ltd is a very small, recently incorporated company with limited financial history and negative working capital, indicating some short-term liquidity risk. While net assets have improved, the company’s capacity to meet current liabilities and generate cash flow is uncertain without further operational data. Credit approval should be conditional on obtaining detailed cash flow forecasts and confirmation of ongoing trading activity to mitigate risk.

RISE ABOVE CARPENTRY & BUILDING LTD - Analysis Report

Company Number: 14282239

Analysis Date: 2025-07-29 21:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rise Above Carpentry & Building Ltd is a very recently established micro-entity with limited operating history and no recorded employees. The balance sheet shows a modest net asset position (£14,181) improving from prior years, but working capital remains negative (£-2,453), indicating potential short-term liquidity pressures. The company has no audit requirement and has filed accounts on time, which is positive for compliance. However, the negative net current assets and minimal fixed asset base suggest limited financial buffers. Given the lack of a profit and loss statement and minimal operational scale, credit approval should be conditional on additional information such as cash flow forecasts, bank statements, and confirmation of ongoing trading activity.

2. Financial Strength:
   The company’s financial position shows a small but improving net asset base driven mainly by fixed assets (plant/equipment related to sawmilling and wood planing). Current liabilities exceed current assets, resulting in a working capital deficit, which is a concern for meeting short-term obligations. The increase in net assets from £10,961 (2023) to £14,181 (2024) suggests some capital injection or asset revaluation. However, the absence of detailed profitability data and the fact that the company has zero employees limit the assessment of operational strength. The micro-entity classification confirms minimal scale.

3. Cash Flow Assessment:
   The negative net current assets imply that the company may have difficulty covering immediate liabilities from current assets alone, potentially relying on external funding or owner support. No data on cash balances or cash flow from operations is provided, restricting a full liquidity evaluation. The absence of employees and limited current assets may indicate low ongoing operational expenses, but also limited revenue generation. Close monitoring of cash inflows and outflows is essential to assess the company’s capacity to service debt or meet supplier terms.

4. Monitoring Points:

• Working capital trends: Ensure net current assets move toward positive territory.
• Profit and loss reporting: Obtain financial performance data to evaluate earnings quality and sustainability.
• Cash flow statements: Monitor actual liquidity and ability to meet short-term obligations without additional capital injections.
• Business activity confirmation: Verify trade volumes and contract pipeline given the zero employee count and micro scale.
• Director and ownership activity: Track any changes in shareholder funds or director financial support.