SYSTEMS MANAGEMENT & CONTROL 2021 LIMITED

Executive Summary

Systems Management & Control 2021 Limited is an active, small-scale construction-related business showing consistent balance sheet growth and positive working capital. The company exhibits good liquidity and compliance, supporting its capacity to meet short-term obligations. Given the limited operating history and scale, credit approval is recommended with modest limits and ongoing monitoring of financial health and cash flow trends.

SYSTEMS MANAGEMENT & CONTROL 2021 LIMITED - Analysis Report

Company Number: 13134547

Analysis Date: 2025-07-29 20:57 UTC

1. Credit Opinion: APPROVE
   Systems Management & Control 2021 Limited demonstrates a positive credit profile given its recent formation and steady growth in net assets over three years. The company is active, filing accounts and confirmation statements on time, showing good compliance and governance. The single director holds full control but appears responsible and transparent. The micro-entity status limits detailed financial disclosures; however, current financials indicate sound short-term liquidity and no significant indebtedness. While the business scale is small, it has built a modest asset base and positive working capital, supporting its ability to meet short-term obligations. Risk is moderate due to limited trading history and scale, so credit facilities should be modest and monitored regularly.

2. Financial Strength:
   The company’s balance sheet shows net assets increasing from £100 in 2021 to £2,223 in 2024, indicating retained earnings or capital injections. Fixed assets are minimal (£357), suggesting limited investment in long-term assets, typical for a micro-entity in construction-related services. Current assets (£2,456) exceed current liabilities (£590) by a good margin, resulting in net current assets of £1,866, signaling positive working capital. Shareholders’ funds mirror net assets, confirming no external debt recorded. Overall, the financial structure is conservative with no leverage, reflecting low financial risk but also limited capital base.

3. Cash Flow Assessment:
   Cash and current asset levels have improved substantially, from £100 in 2021 to £2,456 in 2024, indicating improved liquidity. The company maintains positive net current assets, evidencing the ability to cover short-term liabilities and operational expenses. However, absence of detailed profit & loss data limits full cash flow analysis. The sole director’s active involvement and stable employee count (one) suggest controlled cost management. The company’s ability to generate sustainable cash flow for debt servicing appears sufficient at present but should be monitored as the business grows or seeks larger credit lines.

4. Monitoring Points:

• Continued timely filing of accounts and confirmation statements to ensure compliance.
• Track growth in net assets and working capital to confirm ongoing financial strengthening.
• Monitor cash flow generation once profit & loss data becomes available.
• Watch for any increase in liabilities or leverage that could impact liquidity.
• Maintain oversight on director’s conduct and control given single-person ownership.
• Assess impact of industry sector risks (specialized construction) on business resilience, especially in economic downturns.