SUSSEX PURE WATER LTD

Executive Summary

Sussex Pure Water Ltd is a low-risk micro-entity with a clean compliance record and positive net assets reflecting sound financial footing for a start-up. Its strong liquidity position supports its ability to meet short-term obligations. Credit approval is recommended with routine monitoring of trading performance and cash flow as the business develops.

SUSSEX PURE WATER LTD - Analysis Report

Company Number: 14573824

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: APPROVE (Low Risk) Sussex Pure Water Ltd is a newly incorporated micro-entity (Jan 2023) with a clean statutory filing record and no overdue accounts or returns. The company’s balance sheet as of January 2024 shows a positive net asset position (£5,746) and net current assets of £6,286, indicating sound short-term liquidity relative to its size. Absence of employees suggests minimal operating overhead and likely limited credit exposure. Given the small scale, low liabilities, and no adverse director or company status flags, the risk of default appears low. Credit approval is recommended with standard monitoring due to limited trading history.

2. Financial Strength: The company’s financial strength is modest but stable for a micro-entity. Total current assets of £7,162 exceed current liabilities by a healthy margin, producing positive working capital. Net assets equal shareholders’ funds of £5,746, reflecting capital introduced or retained earnings in this start-up phase. The absence of fixed assets and accruals of £540 are typical for a newly formed entity. No debt or long-term liabilities reported, reducing financial risk. Overall, balance sheet strength corresponds to a low-risk micro-business with limited financial complexity.

3. Cash Flow Assessment: Current assets mainly comprise cash or equivalents given the micro size and no employees, translating into good liquidity. Current liabilities are minimal (£876), so the company should be able to meet short-term obligations comfortably. The positive net current asset position indicates adequate working capital. However, as a start-up, cash flow visibility beyond the first year is limited without P&L data. The company’s ability to generate operating cash flow in the future remains to be proven but is not currently impaired.

4. Monitoring Points:

• Trading performance and revenue generation in subsequent accounting periods to assess sustainability.
• Cash flow trends and any increase in liabilities or working capital strain.
• Appointment of employees or expansion which may increase operating costs and credit needs.
• Changes in ownership or director structure that could impact governance or credit risk.
• Timely filing of future accounts and confirmation statements to ensure compliance remains on track.