Company Number: SC683090

Analysis Date: 2025-07-20 15:37 UTC

Credit Opinion:
APPROVE with conditions. SPG Integrated Limited shows stable and improving financial metrics for a company incorporated in late 2020, operating in the security systems service sector. The company has grown its net assets and net current assets significantly in the latest year, indicating strengthening balance sheet resilience. However, the presence of hire purchase liabilities secured against fixed assets requires ongoing monitoring to ensure debt servicing remains manageable under varying business conditions.

Financial Strength:
The company’s balance sheet demonstrates a positive trajectory. Net assets have increased from £94,419 in 2023 to £171,532 in 2024, reflecting retained earnings growth and asset acquisitions. Tangible fixed assets rose substantially to £194,366, primarily motor vehicles and office equipment, funded partly through hire purchase agreements. Current assets of £322,683 exceed current liabilities of £235,851, resulting in a comfortable net current asset (working capital) position of £86,832. The increase in long-term hire purchase debt (£109,666) suggests leveraged asset growth, but these liabilities are secured by the assets acquired.

Cash Flow Assessment:
Cash holdings are strong and stable at £186,180, consistent with the prior year, indicating reasonable liquidity. Debtors increased to £136,503, which is significant but not alarming; this warrants attention to receivables ageing and collection efficiency to avoid liquidity strain. Current liabilities are well covered by current assets, and the company’s working capital position improved, suggesting adequate short-term financial flexibility. The hire purchase commitments represent a fixed repayment obligation, so cash flow forecasting should incorporate these outflows carefully.

Monitoring Points:

• Monitor hire purchase debt servicing capacity and impact on cash flow, especially as these liabilities have increased significantly.
• Track debtor ageing and collection performance to maintain liquidity.
• Observe profit generation and retained earnings growth in upcoming filings to confirm sustainable financial health.
• Review any changes in trade creditors and taxation liabilities for potential cash flow pressure.
• Keep watch on the company’s ability to maintain or improve net current assets amid any economic downturns or sector-specific risks.