Company Number: 13290114

Analysis Date: 2025-07-20 19:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Surface SOS Ltd is a micro private limited company with a short trading history (since 2021). The company demonstrates positive shareholders’ funds but shows a significant reduction in current assets and net working capital in the latest year. While there are no overdue filings or insolvency flags, the shrinking liquidity positions and increased provisions for liabilities warrant caution. Approval is recommended with conditions: monitor cash flow closely and consider requiring regular financial updates to ensure ongoing repayment capability.

2. Financial Strength:
   The company’s shareholders’ funds decreased from £29,234 in 2023 to £24,615 in 2024, indicating a modest erosion of equity. Current assets declined sharply from £67,725 to £35,093, primarily cash and receivables, while current liabilities dropped significantly from £29,251 to only £216, but provisions for liabilities increased substantially to £9,237 from £6,695. The balance sheet reflects a fragile liquidity position and potential contingent liabilities. Overall, the financial strength is moderate but vulnerable to cash flow pressures.

3. Cash Flow Assessment:
   Net current assets are positive but have declined from approximately £38,474 in 2023 to £25,642 in 2024 (current assets minus current liabilities and accruals). The low current liabilities figure in 2024 is unusual compared to the prior year and may reflect timing or classification changes. The company employs only one person, which limits fixed overheads. However, the reduction in available current assets and rising provisions suggest cash flow management should be carefully scrutinized. Liquidity appears adequate but tight.

4. Monitoring Points:

• Track quarterly cash flow statements to confirm sustained liquidity and working capital adequacy.
• Monitor provisions for liabilities for any material changes indicating emerging risks or disputes.
• Observe any significant changes in current assets composition, especially receivables aging and cash balances.
• Keep watch on customer concentration and contract stability given the niche plumbing and surface repair industry.
• Review director conduct or ownership changes that could impact governance or financial stewardship.