Company Number: SC673151

Analysis Date: 2025-07-29 14:23 UTC

1. Credit Opinion: APPROVE
   Utility Design Services Ltd demonstrates solid financial health for a micro entity with consistent growth in net assets and working capital over the past four years. The company has no overdue filings, is active, and is managed by a single director/shareholder with full control, indicating clear accountability. Given the positive net current assets and increasing equity, the company appears capable of meeting short-term liabilities and servicing debt. However, as a micro company with only one employee and relatively modest asset base, credit facilities should be sized conservatively and monitored regularly.

2. Financial Strength:
   The company’s balance sheet shows a steady rise in fixed assets (from £0 in 2021 to £49,119 in 2024) and current assets (increased to £65,931 in 2024). Current liabilities have grown but remain well covered by current assets, resulting in positive net current assets of £24,636 in 2024 (up from £19,768 in 2023). Net assets have grown from £29,233 in 2020 to £73,755 in 2024, reflecting retained earnings and reinvestment. The equity base is solid, and the company meets micro-entity criteria with low complexity.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and short-term receivables sufficient to cover current liabilities by a comfortable margin (current ratio approx. 1.6 in 2024). Net current assets provide adequate working capital to sustain operations. The single employee structure keeps fixed overhead low, supporting liquidity. No indication of cash flow stress or reliance on external funding is evident from available data.

4. Monitoring Points:

• Continue to track net current assets and liquidity ratios to ensure short-term obligations remain covered.
• Monitor any significant changes in fixed assets investment that may affect cash flow.
• Watch for changes in director/shareholder structure or operational scale that could impact credit risk.
• Given limited employee base, assess risk related to key person dependency.
• Review future accounts filings for profitability trends and any emerging liabilities.