Company Number: 15170080

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WD & SON PAVING Limited is a newly incorporated private limited company (incorporated September 2023) operating in the development of building projects (SIC 41100). The company has filed its first set of accounts up to 30 September 2024, showing a modest net asset base and positive working capital. Given its very recent establishment and limited trading history, credit exposure should be cautiously considered. Approval for credit facilities is recommended on a conditional basis, subject to ongoing monitoring of trading performance, cash flow generation, and timely filing of future accounts and returns.

2. Financial Strength:

• Total net assets stand at £8,848, reflecting initial equity funds and retained earnings (profit and loss reserves of £8,847).
• Tangible fixed assets are minimal (£3,375) and relate to plant and machinery.
• Current assets comprise £59,443 cash with current liabilities of £53,970, resulting in a modest positive net current asset position of £5,473, indicating working capital adequacy at this stage.
• No long-term liabilities or borrowings are reported, which limits financial risk but also highlights limited capitalisation.
  Overall, the balance sheet is small but stable, typical for a start-up within the construction sector.

3. Cash Flow Assessment:

• Cash at bank of £59,443 exceeds current liabilities due within one year (£53,970), providing a short-term liquidity buffer.
• The working capital position is positive but tight, suggesting limited headroom to absorb unexpected expenses or delayed receivables.
• The company employs only one person (the director), implying low fixed overheads and a lean cost structure.
• Absence of historical cash flow statements limits insight into operating cash generation trends; however, initial cash balances and low liabilities indicate manageable liquidity risk currently.

4. Monitoring Points:

• Track subsequent trading results and profit generation to confirm sustainable cash flow and equity growth.
• Monitor debtor collections and creditor payment terms closely to manage working capital efficiently.
• Ensure timely filing of statutory accounts and confirmation statements to avoid regulatory penalties and maintain transparency.
• Review any new borrowings or capital injections that may impact credit exposure or leverage.
• Watch for changes in director or significant control that could affect governance or financial stewardship.