THE CAMBRIDGE LANDSCAPER DESIGN AND BUILD LTD

Executive Summary

The Cambridge Landscaper Design and Build Ltd is a micro-entity with positive net assets but a negative working capital position, reflecting early-stage liquidity constraints. Credit approval should be conditional and limited, with close monitoring of cash flow and financial updates to mitigate risk. The company’s small scale and new establishment warrant cautious credit exposure.

THE CAMBRIDGE LANDSCAPER DESIGN AND BUILD LTD - Analysis Report

Company Number: 15114006

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Cambridge Landscaper Design and Build Ltd is a newly incorporated micro-entity with limited financial history. Its net assets are positive at £8,669, indicating some initial capital buffer. However, the company shows a net current liability position of £23,641 (current assets of £7,177 vs current liabilities of £30,818), which signals working capital strain and potential liquidity issues. Given the company’s very recent formation (September 2023) and small scale (one employee), credit exposure should be limited and closely monitored. Approval for credit should be conditional on receiving ongoing financial updates and clarifying short-term cash flow arrangements.

2. Financial Strength:
   The company’s balance sheet shows fixed assets of £32,310 and net assets of £8,669. The positive net asset position reflects initial shareholder funds but is modest in scale. The current liabilities exceed current assets substantially, resulting in negative net current assets of £23,641, which is a concern for short-term financial stability. As a micro-entity, the company’s financial base is very thin, and it heavily relies on the owner/director’s equity and possibly external financing to meet obligations.

3. Cash Flow Assessment:
   Current assets of only £7,177 against current liabilities of £30,818 suggest liquidity pressure. The company may face difficulties meeting operating expenses and short-term debts without additional cash inflows or credit facilities. The single director/employee structure points to a lean operation but also limited resource depth. Monitoring cash flow forecasts and confirming access to short-term funding lines (e.g., overdraft or director’s loan) is essential before extending credit.

4. Monitoring Points:

• Quarterly updates on cash balances and receivables
• Confirmation of trade payment patterns and any overdue creditors
• Development of working capital management controls
• Tracking turnover growth and profitability trends as business scales
• Director’s ongoing financial commitment and any additional capital injections