WEST END MAINTENANCE SOLUTIONS LTD.

Executive Summary

West End Maintenance Solutions Ltd. holds a positive but weakening financial position with declining equity and tighter working capital due to increased liabilities. The company appears able to meet current obligations but should be monitored closely for cash flow and profitability given its micro-entity scale and recent financial shifts. Conditional approval is advised, pending ongoing review of liquidity and debt servicing capacity.

WEST END MAINTENANCE SOLUTIONS LTD. - Analysis Report

Company Number: SC679505

Analysis Date: 2025-07-20 13:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. West End Maintenance Solutions Ltd. demonstrates a stable balance sheet with positive net assets and working capital, indicating an ability to meet short-term obligations. However, a notable decline in net assets from £29.2k in 2022 to £20.1k in 2023, coupled with the introduction of long-term liabilities (£11.9k), suggests emerging financial pressure. The company’s micro-entity size and single-employee operation limit operational scale and diversification, which could impact resilience. Approval is recommended with conditions including regular monitoring of liquidity, debt servicing capacity, and profitability trends.

2. Financial Strength: The company’s net assets of £20.1k remain positive but have decreased by approximately 31% compared to the prior year. Fixed assets increased significantly (£1.6k to £15.3k), possibly reflecting capital expenditure funded by incurring long-term debt (£11.9k). Current assets remain steady (£43.2k vs £45.6k), while current liabilities increased to £26.1k from £16.9k, reducing net current assets from £28.7k to £17.1k. This tightening of working capital and introduction of long-term creditors reduce financial flexibility. Shareholders’ funds have decreased accordingly, impacting equity buffers.

3. Cash Flow Assessment: The liquidity profile shows a reduction in net current assets, indicating tighter short-term liquidity. Current liabilities have risen notably, which may pressure cash flows if revenue or receivables collection weakens. The company maintains positive working capital, but the decline warrants close attention. Absence of profit and loss data limits assessment of operational cash generation, so it is important to confirm continued profitability and cash conversion efficiency. The company’s single employee status implies low fixed overheads, aiding cash flow stability.

4. Monitoring Points:

• Monthly cash flow and working capital trends to detect liquidity stress early.
• Timely servicing of newly incurred long-term debt obligations.
• Profitability and revenue trends, especially given the absence of P&L data and decline in equity.
• Management’s ability to maintain or grow the client base in electrical repair services.
• Compliance with filing deadlines and any changes in director or ownership structure.
• Any further increases in liabilities or reductions in current assets.