Company Number: 13340646

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: DECLINE. S & B Rendering Ltd shows persistent working capital deficits and declining net assets over recent years, indicating tightening liquidity and increasing reliance on longer-term creditors. The company’s net current liabilities of £2,674 at the most recent year-end (2025-03-31) and overall low net assets of £2,168 raise concerns about its ability to meet short-term obligations without additional support. Although the company is small and has modest fixed assets, the financial trend shows weakening financial resilience, which is a risk for extending new credit facilities.

2. Financial Strength: The balance sheet reveals a decline in net assets from £14,523 in 2022 to just £2,168 in 2025, primarily driven by rising non-current liabilities (long-term creditors) and provisions. Tangible fixed assets have depreciated slightly but remain around £13,000. The company’s equity base is very thin, with shareholders’ funds barely above the nominal share capital of £100. This thin capitalization limits the company’s buffer against trading shocks or downturns.

3. Cash Flow Assessment: Cash balances remain low at £4,450, and current liabilities exceed current assets, resulting in negative net working capital. Debtors have decreased but still represent a significant portion of current assets (£17,336). This suggests potential delays in cash conversion or collection risk. The negative working capital position and reliance on creditor funding could pressure liquidity, especially if receivables slow further or creditor terms tighten.

4. Monitoring Points:

• Monitor cash flow closely, focusing on debtor collections and creditor payment terms.
• Watch for further deterioration in net current assets and net asset position.
• Keep an eye on provisions and long-term creditor balances for potential future liabilities.
• Review turnover and profitability trends when available to assess operational performance.
• Monitor director conduct and management stability, though currently no adverse records are noted.