Company Number: 13047755

Analysis Date: 2025-07-20 16:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RJLT Plumbing Limited is a micro-entity operating in plumbing installation with a short trading history since 2020. The company has shown improvement in turnover and profitability in the latest year, indicating positive business momentum. However, the scale of operations remains small with modest turnover (£27,256 in 2023) and limited working capital. Given this, credit should be extended cautiously, ideally with limits aligned to their scale and monitored regularly. The absence of employees beyond the director suggests a one-person operation, which may pose capacity and continuity risks.

2. Financial Strength:
   The company’s balance sheet shows a small but improving net asset base, growing from £647 in 2022 to £3,415 in 2023, driven by retained earnings from profitable operations. Current assets (£5,870) comfortably exceed current liabilities (£1,915), resulting in positive net current assets of £3,955, which supports short-term financial stability. Shareholders’ funds are fully retained earnings, indicating no external equity injections beyond the nominal share capital of £1. This modest equity base reflects the company’s micro size but growing financial strength.

3. Cash Flow Assessment:
   Current assets primarily comprise cash and debtors, while current liabilities are relatively low. Positive net current assets suggest the company can meet short-term obligations without liquidity strain. However, the small absolute cash flow amounts and lack of detailed cash flow statements limit full assessment. The company’s ability to generate profits (£6,067 in 2023) after costs and tax supports internal cash generation. Nevertheless, the absence of employees and reliance on a single director may constrain operational expansion and cash flow scaling.

4. Monitoring Points:

• Track turnover and profitability trends to ensure continued business growth and ability to service credit.
• Monitor working capital ratios and promptness in settling trade creditors.
• Watch for any increase in liabilities or delayed payments that could impair liquidity.
• Assess any changes in business scale, such as hiring staff or expanding services, which may impact credit risk.
• Keep an eye on director’s capacity and any external risks given the micro size and single-person operation.