SPARKS OF SHEFFORD LIMITED

Executive Summary

Sparks of Shefford Limited is a start-up micro-entity with a clean balance sheet showing positive working capital and no long-term debt. The company’s financial position supports approval for credit facilities at this early stage, subject to ongoing monitoring of trading performance and liquidity trends. Directors appear stable, and no adverse filings or overdue documents are noted.

SPARKS OF SHEFFORD LIMITED - Analysis Report

Company Number: 14625287

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: APPROVE
   Sparks of Shefford Limited is a newly incorporated micro-entity (2023) operating in electrical installation (SIC 43210) with modest but positive financials as of June 2024. The company shows net current assets of £10,601 and net assets of £39,701, indicating a positive working capital position and no long-term liabilities. The presence of two directors with significant control and no adverse records supports sound governance. Despite limited operating history, the financial position suggests capacity to meet short-term obligations and service credit facilities with appropriate monitoring.

2. Financial Strength:

• Fixed assets of £29,100 primarily reflect investment in operational capacity.
• Current assets at £66,582 exceed current liabilities of £55,981, yielding positive net current assets (working capital) of £10,601.
• No long-term creditors or provisions reported, so balance sheet shows low leverage.
• Shareholders’ funds equal net assets at £39,701, indicating equity-financed growth.
• Micro-entity exemption applies; therefore, limited detail and no audit, which is typical for small businesses.

3. Cash Flow Assessment:

• Current assets exceed current liabilities, suggesting adequate liquidity to cover near-term debts.
• No negative working capital or overdraft indications.
• Small headcount (average 2 employees) supports manageable operating expenses.
• Absence of detailed cash flow statement limits insight, but positive net current assets are a good proxy for liquidity at year-end.

4. Monitoring Points:

• Monitor growth in turnover and profitability once trading data becomes available to assess ability to generate operating cash flow.
• Watch current liabilities trend relative to current assets for any deterioration in liquidity.
• Track director conduct and any changes in control or ownership.
• Review next set of accounts and confirmation statement filings for timely compliance.
• Assess impact of market conditions in electrical installation sector on business stability.