SCAFFOLDING AND SOLAR INSTALLATION LIMITED

Executive Summary

Scaffolding and Solar Installation Limited is currently in a weak financial position, with negative working capital and net liabilities indicating an inability to meet short-term obligations from existing resources. The company’s financial health has deteriorated over the last two years, and without intervention or improved cash flow, credit risk remains high. Given these factors, credit facilities are not recommended at this time.

SCAFFOLDING AND SOLAR INSTALLATION LIMITED - Analysis Report

Company Number: 14357932

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: DECLINE
   Scaffolding and Solar Installation Limited’s financials indicate ongoing cash flow and liquidity stress. The company shows negative net current assets and total net liabilities for the years presented, which points to insufficient working capital to cover short-term obligations. Despite being active and having a director with full control, the company’s financial trajectory is negative, with worsening liquidity from 2023 to 2024. This signals poor business resilience and raises concerns about its ability to service debt or honor commercial agreements without additional capital injection or restructuring.

2. Financial Strength:
   The balance sheet reveals a deterioration in financial health. Fixed assets declined from £9,750 to £6,500, while current assets decreased sharply from £15,687 to £4,303. Current liabilities reduced from £33,300 to £17,525 but remain significantly higher than current assets, resulting in negative net current assets of -£13,222 in 2024 (versus -£17,613 in 2023). Consequently, shareholders’ funds are negative at -£6,722, reflecting accumulated losses or equity erosion. The company’s micro-entity status and single employee structure limit operational scale and financial buffer.

3. Cash Flow Assessment:
   The negative net current assets highlight a liquidity shortfall, indicating the company does not have adequate working capital to meet short-term liabilities. The sharp drop in current assets and persistent negative net assets suggest cash flow constraints and potential reliance on director funding or external credit lines. The absence of detailed cash flow statements prevents a full assessment, but the balance sheet signals tight liquidity and weak cash generation ability.

4. Monitoring Points:

• Improvement or further deterioration in net current assets and overall liquidity position
• Trend in fixed and current asset levels to evaluate operational capacity
• Any changes in director funding or external borrowing arrangements
• Timeliness of statutory filings and maintenance of active status
• Business revenue growth or contraction, if available, to assess commercial viability
• Any changes in control or management that might impact financial stewardship