SW FLUE INSTALLATIONS LTD

Executive Summary

SW Flue Installations Ltd presents a low solvency risk with positive net assets and strong liquidity, complemented by timely statutory filings and stable management. However, its small scale, modest share capital, and long-term debt require further examination to fully assess operational resilience and financial flexibility. Overall, the company appears financially stable within its micro-entity classification, warranting routine due diligence on credit terms and business sustainability.

SW FLUE INSTALLATIONS LTD - Analysis Report

Company Number: 13130238

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position and healthy net current assets, indicating it can meet short-term obligations. No overdue filings or indications of regulatory non-compliance are present. The financial data shows consistent growth in net assets and current assets over the last three years.

2. Key Concerns:

• Relatively Small Share Capital: The company has a nominal share capital of only £20, which may limit financial flexibility.
• Long-Term Creditors: The presence of creditors falling due after more than one year (£15,190 in 2024) requires monitoring to ensure repayment capability.
• Limited Scale: Being a micro-entity with a small employee base (3 employees) and modest asset base could imply operational vulnerability to market fluctuations or loss of key personnel.

3. Positive Indicators:

• Consistent Profitability and Growth: Net assets increased from £13,529 in 2021 to £34,071 in 2024, showing retained earnings growth and capital accumulation.
• Strong Liquidity Position: Positive net current assets (£28,235 in 2024) suggest the company comfortably covers its short-term liabilities.
• Compliance and Timely Filings: Accounts and confirmation statements are up to date, reducing regulatory risk.
• Stable Management: The sole director, Mr Shaun Ward, has been in place since incorporation, indicating stability in governance.

4. Due Diligence Notes:

• Review Details of Long-Term Creditors: Understand the nature and terms of the £15,190 long-term liabilities to assess repayment risk.
• Examine Cash Flow Statements: As micro-entity filings may lack detailed cash flow data, seek additional information on cash generation and working capital management.
• Assess Dependence on Key Personnel: Given the small team size, evaluate risks related to reliance on the director and limited staff.
• Confirm Business Model Sustainability: Investigate market position and client base in the specialised construction niche (SIC 43999) to verify operational stability.