Company Number: 12497286

Analysis Date: 2025-07-29 18:01 UTC

1. Credit Opinion: APPROVE
   Spectrum Refurbishment Ltd demonstrates solid financial health for a micro-entity with consistent growth in net assets and strong liquidity. The company maintains a healthy net current asset position (£173k in 2024), indicating good short-term solvency and working capital management. There are no overdue filings or signs of distress. The single director and majority owner shows stability in management. Overall, the company appears capable of meeting credit obligations.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £36k in 2020 to £194k in 2024. Fixed assets are modest (£22k), consistent with the construction installation industry and micro-entity status. Current liabilities have decreased substantially from £202k in 2023 to £62k in 2024, improving working capital and reducing short-term financial risk. Shareholders’ funds mirror net assets, confirming no significant debt beyond trade creditors.

3. Cash Flow Assessment:
   Current assets (mainly cash and receivables) comfortably exceed current liabilities, resulting in net current assets of £173k, indicating sufficient liquidity to cover immediate obligations. The company has managed working capital effectively, with a notable reduction in creditor balances, which reduces the risk of cash flow strain. The business operates with a small workforce (2 employees), which helps contain fixed overhead costs.

4. Monitoring Points:

• Monitor trends in current liabilities and creditor days to ensure trade payables remain manageable.
• Watch for any significant changes in cash flow patterns or working capital needs, especially with growth in contract volume.
• Review director continuity and any changes in ownership/control that might affect governance.
• Keep an eye on the company’s ability to maintain profitability and positive reserves as filings for profit and loss are not detailed here.