SCR CONTRACTS (SCOTLAND) LIMITED

Executive Summary

SCR Contracts (Scotland) Limited demonstrates a healthy opening financial position for a micro-entity with positive net assets and working capital. The company’s sole director and shareholder provides clear governance, and there are no current compliance issues. Approval is recommended for limited credit facilities with standard monitoring of financial progress as the business develops.

SCR CONTRACTS (SCOTLAND) LIMITED - Analysis Report

Company Number: SC787161

Analysis Date: 2025-07-20 17:56 UTC

1. Credit Opinion: APPROVE
   SCR Contracts (Scotland) Limited is a newly incorporated micro-entity with a solid initial financial position. The company shows positive net assets and working capital, indicating the ability to meet short-term obligations. The 100% ownership and directorship by one individual suggests clear management control. Given the absence of adverse director records and no overdue filings, the company presents a low credit risk at this stage for modest credit facilities. However, ongoing monitoring will be necessary due to limited trading history.

2. Financial Strength:
   The balance sheet as of 31 October 2024 shows fixed assets of £40,588 and current assets of £62,279 against current liabilities of £26,903, yielding net current assets of £35,376. Long-term liabilities stand at £26,767, leading to net assets of £49,197. Shareholders' funds equal net assets, reflecting an equity-funded structure with no apparent external equity dilution. The company’s capital structure appears conservative with a manageable level of liabilities relative to assets, appropriate for a micro-sized construction contractor.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a comfortable margin, indicating satisfactory short-term liquidity. The company’s working capital position should support operational needs and any minor fluctuations in cash flow. No audit is required under micro-entity exemptions, but the absence of detailed cash flow statements limits deeper assessment. The business employs three staff on average, suggesting modest payroll commitments consistent with its scale.

4. Monitoring Points:

• Profitability and cash flow generation as trading matures beyond the initial year
• Any increase in liabilities, especially long-term debt, relative to asset base
• Timely submission of future accounts and confirmation statements to maintain compliance
• Maintenance of positive net current assets and equity levels
• Changes in director or PSC status, including any adverse conduct records