Company Number: 13025842

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: APPROVE
   Total Climate Ltd demonstrates a solid financial position with improving net assets and working capital over recent years. The company is small in scale but shows consistent growth in equity and liquidity, suggesting it can meet short-term obligations and service credit facilities. No adverse director conduct or overdue filings indicate sound governance. Credit can be extended with confidence, subject to routine monitoring.

2. Financial Strength:
   The company's balance sheet shows healthy improvement from £16k net assets in 2020 to nearly £194k in 2023, more than a tenfold increase. Fixed assets have grown modestly, while current assets have increased substantially, especially cash or equivalents implied by current asset growth. Current liabilities have reduced slightly, improving net current assets from £2k to £176k. The equity base is strong relative to liabilities, indicating good capitalization for a micro entity.

3. Cash Flow Assessment:
   Strong positive net current assets (£175k) and a current ratio above 3:1 (current assets £262k vs liabilities £86k) suggest ample liquidity to cover short-term debts and operational needs. The increase in working capital indicates improved cash flow management and business operations expansion. Although detailed cash flow statements are not provided, the balance sheet implies sufficient cash generation or reserves.

4. Monitoring Points:

• Continue tracking working capital and liquidity ratios to ensure ongoing ability to meet obligations.
• Monitor revenue and profit trends once available to confirm sustained operational growth.
• Watch for changes in director status or ownership that might affect governance.
• Review any unexpected increases in liabilities or delays in filing accounts and confirmation statements.