STEFAN SPIBY BUILDING CONTRACTOR LTD

Executive Summary

Stefan Spiby Building Contractor Ltd is a micro-sized, newly established construction company with modest net assets and some working capital strain due to finance lease liabilities. While the business shows initial capitalization and timely compliance, its early stage and cash flow sensitivity warrant conditional credit approval with careful ongoing monitoring of liquidity and debt servicing capacity.

STEFAN SPIBY BUILDING CONTRACTOR LTD - Analysis Report

Company Number: 15054723

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Stefan Spiby Building Contractor Ltd is a newly incorporated private limited company operating in domestic building construction. The company has filed its first set of accounts timely and shows positive net assets (£14,240). However, it currently has a working capital deficiency (net current liabilities of £421) and significant finance lease obligations (£8,341 total, split between current and long-term). Given the nascent stage of the business and initial financing structure heavily reliant on leased assets, credit approval should be conditional on close monitoring of cash flow and repayment capacity as contracts mature.

2. Financial Strength:
   The balance sheet shows tangible fixed assets valued at £19,748 net of depreciation, supported by stocks (£11,986) and debtors (£2,696). Current liabilities total £20,219, primarily trade creditors (£15,434) and finance lease obligations (£3,254). The company has long-term lease liabilities of £5,087. Shareholders’ funds stand at £14,239, indicating initial equity injection but modest capitalization. The overall asset base is small, reflecting the company’s micro size and early operations. The modest net assets and presence of lease liabilities indicate moderate financial leverage.

3. Cash Flow Assessment:
   Cash on hand is £5,116, which provides some liquidity cushion. However, the current liabilities exceed current assets by £421, signaling tight working capital management. The presence of hire purchase and finance lease obligations requires regular repayments, impacting cash flow. Trade debtors are relatively low (£756), which may pressurize liquidity if collections slow. The company’s turnover and profitability are not disclosed but should be closely reviewed going forward to ensure operational cash generation can cover liabilities and finance costs.

4. Monitoring Points:

• Cash flow trends and liquidity ratios (current ratio, quick ratio) to ensure working capital adequacy.
• Timely collection of trade debtors and management of trade creditors.
• Ability to service finance lease obligations without default.
• Contract pipeline and revenue growth to transition from start-up phase.
• Any additional borrowings or changes in capital structure.
• Management’s adherence to filing deadlines and compliance.