SILVER HOMES (WARMLAKE) LTD

Executive Summary

Silver Homes (Warmlake) Ltd shows improved liquidity and solvency following repayment of prior loans, reflected in a positive but modest net current asset position. While the balance sheet is stable, limited operating history and absence of profitability data warrant conditional approval with close monitoring of cash flow and debt levels. Continued financial discipline and operational growth will be critical to support ongoing creditworthiness.

SILVER HOMES (WARMLAKE) LTD - Analysis Report

Company Number: 13624622

Analysis Date: 2025-07-29 13:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Silver Homes (Warmlake) Ltd is a relatively new private limited company incorporated in 2021, operating in property development. The latest accounts show a significant reduction in both current assets and current liabilities compared to the prior year, reflecting an unwinding of a large loan balance (£1.12M in 2023 to nil in 2024). While the company currently reports positive net current assets (£38k) and shareholders’ funds (£38k), the sharp decrease in scale and working capital signals potential volatility. The company appears to have repaid or restructured prior borrowings, improving liquidity. However, limited operating history, no employees, and the absence of an income statement (due to small company exemption) restrict a full assessment of profitability and ongoing cash flow sufficiency. Approval is conditional on monitoring cash flow generation and debt servicing capability going forward.

2. Financial Strength
   The balance sheet as of 30 September 2024 shows total current assets of £75k dominated by cash (£74.7k) and minimal debtors (£607). Current liabilities have dropped markedly to £37k from £1.18M the previous year, with no outstanding loans now reported. This improved working capital position (£38k net) and positive shareholders’ funds indicate a modest but stable financial base. The prior year’s large loan balance was interest-bearing at 10% and repayable on demand, which posed refinancing risk; its removal is a positive development. The company’s small asset base and lack of fixed assets limit collateral value. Overall, the balance sheet is solvent but lean, with limited buffer for unexpected downturns.

3. Cash Flow Assessment
   Cash on hand increased significantly from £19k in 2023 to £74.7k in 2024, suggesting improved liquidity. The reduction in creditors and elimination of loan balances reduce near-term cash outflows related to debt service. However, the absence of an income statement and operating cash flow details prevents a definitive assessment of ongoing cash inflows from operations. The company’s lack of employees implies low overheads but also limited operational scale. The working capital position is positive but narrow, so close attention to cash flow forecasts and timing of property development receivables and payables is advised to avoid liquidity stress.

4. Monitoring Points

• Cash flow trends: Verify ongoing positive operating cash flows to sustain debt service and working capital.
• Debt levels: Monitor for any new borrowings and related interest obligations that may strain liquidity.
• Receivables and payables aging: Ensure timely collection of debtors and control of creditors to maintain positive net current assets.
• Business growth: Track contract wins and property development progress to assess revenue growth and profitability potential.
• Director conduct and governance: Confirm no adverse changes in management or control that could increase risk.