Company Number: SC683367

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: APPROVE

Stuart J Masterton AssocRICS Limited demonstrates a stable and improving financial position with adequate working capital and positive net assets. The company is small (micro-entity), with minimal liabilities and a single employee (the director), indicating low operational complexity and fixed costs. There are no indications of financial stress or overdue filings. The simplicity of the business and consistency in filings suggest sound management and governance. Given the positive net asset growth and healthy liquidity, the company appears capable of servicing modest credit facilities.

2. Financial Strength:

The company’s net assets have improved from £3,040 in 2020 to £8,317 in 2023, reflecting retained earnings accumulation and prudent financial management. Current assets slightly decreased in 2023 (£15,597) compared to 2022 (£17,528), but current liabilities significantly dropped from £13,539 in 2022 to £6,030 in 2023, improving net current assets from £3,989 to £9,567. The balance sheet is simple with no long-term liabilities disclosed, and equity consists largely of retained earnings. The share capital is nominal (£2.00), typical for micro companies.

3. Cash Flow Assessment:

Working capital is positive and increasing, indicating the company maintains sufficient short-term liquidity to meet immediate obligations. The current ratio (current assets/current liabilities) improved to approximately 2.6 in 2023 (15,597/6,030), a healthy position for a company of this size. Given the micro-entity status and small scale, cash flow volatility is likely low. While detailed cash flow statements are not available, the balance sheet movement suggests the company generates sufficient cash from operations to reduce liabilities and build reserves.

4. Monitoring Points:

• Monitor accounts filing timeliness to ensure compliance continues.
• Watch for any significant changes in current liabilities or sudden declines in net assets.
• Track industry conditions relevant to SIC 71129 (Other engineering activities) as economic downturns could impact revenue streams.
• Keep an eye on director changes or company status updates.
• Observe any increase in debt or shifts in working capital that could stress liquidity.