Company Number: 13611776

Analysis Date: 2025-07-29 14:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Saltbox Build Ltd has shown a notable turnaround from a negative net asset position of £(5,770) in 2022 to a positive £18,510 in 2023, indicating improved financial health. However, the company remains relatively young (incorporated in 2021) and operates in the construction of domestic buildings, which can be cyclical and sensitive to economic conditions. The current liabilities at £52,017 remain significant but are covered by current assets of £70,527, resulting in positive working capital. The absence of an audit means financials are unaudited, adding some risk. Overall, credit can be extended but with monitoring and possibly limits tied to working capital levels and cash flow performance.

2. Financial Strength:
   The balance sheet shows strengthening with net assets improving to £18,510 as of 31/12/2023 from a deficit position previously. The company holds £39,580 in stock which indicates inventory buildup, and cash balances have increased to £26,117, improving liquidity. Current liabilities have risen substantially to £52,017 from £11,252, mainly due to increased creditors including corporation tax and social security liabilities. Shareholders’ funds are positive but modest at £18,510, reflecting limited equity backing. Overall, the company is solvent but with moderate financial leverage and a need to manage creditor balances carefully.

3. Cash Flow Assessment:
   Cash at bank increased significantly year-on-year, which is positive for liquidity. Net current assets are positive at £18,510, indicating working capital adequacy. Debtors are low (£4,830) relative to creditors, suggesting efficient collections. However, the large increase in creditors (from £11,252 to £52,017) may reflect stretched payment terms or accrued liabilities, which could pressure short-term liquidity if not managed prudently. Cash flow from operations should be closely monitored to ensure the company can meet these liabilities as they fall due.

4. Monitoring Points:

• Creditor balances and payment terms: Monitor the trend and ageing of trade and other creditors to avoid liquidity strain.
• Cash flow from operations: Confirm that operating cash inflows consistently cover working capital needs and creditor payments.
• Stock levels: Assess inventory turnover to ensure stock is not becoming obsolete or tying up excessive funds.
• Profitability trends and margin sustainability: Since no profit and loss account was filed, future filings should be reviewed for operational performance and profit generation.
• Compliance with filing deadlines: Although current filings are up to date, maintain vigilance to ensure continued compliance.