SYLVAN INVESTMENT LIMITED

Executive Summary

Sylvan Investment Limited is a newly established building project developer with minimal equity and a working capital position reliant on large debtor balances to cover current liabilities. While current filings are compliant and no adverse records exist, the company’s tight liquidity and lack of cash reserves warrant conditional credit approval with close monitoring of debtor collections and cash flow. Continued transparency on financial performance and liquidity will be critical to ensuring repayment capacity going forward.

SYLVAN INVESTMENT LIMITED - Analysis Report

Company Number: 14747053

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sylvan Investment Limited is a newly incorporated private limited company engaged in building project development. Its financial data shows a very limited equity base (£63 net assets) with current liabilities closely matching current assets (£1.25m each), indicating a tightly balanced working capital position. The company’s large debtor balance (£1.25m) effectively matches its current liabilities, suggesting reliance on timely receivables collection to meet short-term obligations. While there is no history of default or late filings, the absence of profit and loss data and minimal cash reserves (£63) present some risk. Approval is recommended on a conditional basis, subject to regular monitoring of debtor collections and liquidity.

2. Financial Strength:
   The company’s capital structure is minimal, with share capital and net assets at £63 as of the latest accounts. The balance sheet reflects £1.25m in debtors balanced by an equal amount of current liabilities, implying that the company is operating with matched receivables and payables but no significant equity buffer. No fixed assets or reserves are reported, and the company holds almost no cash. This weak financial base means the company has limited capacity to absorb shocks or delays in payments from customers.

3. Cash Flow Assessment:
   Liquidity is constrained with cash on hand barely covering any immediate expenses. The company’s working capital position is neutral due to debtors equalling current liabilities; however, the realization of these receivables is critical to maintaining operational cash flow. Without strong cash reserves or retained earnings, any delay in debtor payments could place pressure on meeting liabilities. The absence of profit and loss disclosure further limits assessment of cash generation capacity.

4. Monitoring Points:

• Timeliness and collectability of the £1.25m debtor balance.
• Ability to generate positive operating cash flow and build cash reserves.
• Changes in net assets and equity position in subsequent accounts filings.
• Any increase in current liabilities or new borrowings affecting liquidity.
• Director and management activity regarding business development and financial control.