Company Number: 14721843

Analysis Date: 2025-07-20 15:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ROUNDTREE WAY CONTAINERS LTD is a newly incorporated private limited company (since March 2023) operating in the equipment leasing sector (SIC 77390). The company shows a positive net asset position and adequate working capital, indicating initial financial stability. However, being in its first full financial year, there is limited historical financial data to fully assess performance trends and business resilience. The director has majority control and appears to maintain sound financial stewardship. Credit approval is recommended with conditions such as periodic financial monitoring and possibly limits on exposure until a more established trading record is developed.

2. Financial Strength:
   At 31 March 2024, the company reported net assets of £29,986, supported by tangible fixed assets (£19,200) and net current assets of £15,586. Current assets of £21,485 are largely cash (£19,044), which strengthens liquidity. Current liabilities stand at £5,899, primarily corporation tax and accruals. There is a deferred tax liability of £4,800 related to accelerated capital allowances, which is a non-cash timing difference. Shareholders' funds equal net assets, indicating no external debt on the balance sheet. Overall, the balance sheet reflects a modest but sound financial base for a start-up business.

3. Cash Flow Assessment:
   The company has a strong cash position relative to current liabilities, with cash covering current liabilities by over 3 times, providing good short-term liquidity. Debtors are minimal (£2,117), suggesting limited credit risk from customers or early stage operations with low receivables. The positive net current assets imply sufficient working capital to meet obligations. However, as a new business, cash flow predictability and sustainability remain untested. Ongoing monitoring of cash flow from operations is advised to confirm the company’s ability to generate cash internally.

4. Monitoring Points:

• Monitor future trading results and profitability trends as more financial periods are completed.
• Watch cash flow patterns closely, including debtor collections and creditor payments.
• Review corporation tax and deferred tax balances for any unexpected liabilities.
• Track working capital changes to ensure operational liquidity remains strong.
• Confirm director’s ongoing commitment and control, and any changes in ownership or management.
• Assess any new borrowings or financial obligations that may impact credit risk.