Company Number: 13885751

Analysis Date: 2025-07-29 13:56 UTC

1. Credit Opinion: APPROVE with caution. Tree Tech Arborist Limited is a young, small private limited company active in landscape and forestry services. The latest financials show growth in net current assets and shareholders’ funds, indicating improving financial stability. However, the company is single-director run, with limited operating history and a concentrated risk profile. Lending should be moderate and possibly linked to ongoing performance monitoring.

2. Financial Strength: The balance sheet shows tangible fixed assets of £34,856 (net book value), primarily plant, machinery and motor vehicles, which is substantial relative to the company’s size. Shareholders’ funds increased significantly from £34,769 to £42,321 year-on-year, reflecting retained earnings growth or capital injection. Current assets rose from £2,301 to £11,656, driven by £8,276 cash and £3,380 debtors, while current liabilities increased to £4,191. The company maintains positive net current assets (£7,465) and a strong equity base, supporting solvency.

3. Cash Flow Assessment: Cash at bank improved from zero to £8,276, providing a liquidity buffer. Debtors increased but remain modest (£3,380), suggesting manageable receivables. Current liabilities increased but remain covered by current assets, yielding a healthy current ratio (~2.8). Working capital is positive and growing, indicating the company can meet short-term obligations. However, absence of detailed cash flow statements limits visibility on operating cash generation and debt service capacity.

4. Monitoring Points:

• Track turnover and profitability trends to ensure continued equity build and cash flow generation.
• Monitor debtor aging and creditor payment terms to manage working capital efficiently.
• Observe changes in tangible asset utilization and depreciation to assess capital expenditure sustainability.
• Review director’s financial stewardship as sole controller; consider concentration risk mitigation.
• Watch for tax and social security liabilities, which increased notably and could impact cash flow.