TOP OF THE LINE LTD

Executive Summary

Top Of The Line Ltd is a micro-entity start-up in the construction sector with a modest but positive net asset position and working capital. The company’s single director holds full control and the financials show adequate short-term liquidity, but the limited trading history and size pose inherent credit risks. Conditional approval is recommended with a focus on monitoring financial performance and cash flow stability in future periods.

TOP OF THE LINE LTD - Analysis Report

Company Number: 15239117

Analysis Date: 2025-07-20 17:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Top Of The Line Ltd is a newly incorporated private limited company with a single director and shareholder controlling 75-100% of voting rights. The company operates in the construction sector, specifically building completion and finishing. Financially, the company shows positive net assets (£35,211) and positive working capital (£20,169), indicating an ability to meet short-term liabilities. However, as it has only operated for just over one year and has minimal financial history, credit risk remains elevated due to limited trading track record and a single employee. Credit approval should be conditional upon ongoing monitoring of operational performance, cash flow, and timely submission of future accounts.

2. Financial Strength:
   The balance sheet reflects a modest but positive financial position with total assets less current liabilities of £35,211. Fixed assets are low (£15,042), as expected for a new micro-entity in construction, and current assets exceed current liabilities by £20,169, showing adequate short-term liquidity. Shareholders’ funds equal net assets, indicating no external debt currently. The company adheres to micro-entity reporting standards with exemption from audit, so financial detail and transparency are limited. Overall, the financial strength is acceptable for a start-up but not yet proven over multiple trading cycles.

3. Cash Flow Assessment:
   Current assets amount to £102,133 with current liabilities of £81,964, resulting in a positive net current asset position. However, the accounts do not provide detailed cash flow statements or profit and loss information, so cash generation capacity cannot be fully assessed. The presence of net working capital indicates some buffer for liquidity, but reliance on a single director and minimal staff suggests potential operational risks if cash inflows slow. Close attention to cash flow forecasts and debtor management is recommended.

4. Monitoring Points:

• Timely filing of next annual accounts and confirmation statements.
• Evolution of turnover, profitability, and cash flow in subsequent accounting periods.
• Changes in director or ownership structure, particularly any dilution of control.
• Management of working capital, especially current liabilities relative to cash and receivables.
• Any indications of slow payments or credit delays from customers or to suppliers.
• Expansion of employee base and operational scale to support business growth.