Company Number: 14248087

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion: APPROVE
   Woodsec Ltd shows a positive net asset position and working capital, with no overdue filings and an active status. The company is small and relatively new but demonstrates sound financial stewardship. The directors have injected personal funds, indicating commitment. There is no indication of financial distress or adverse director conduct. The company’s ability to meet short-term liabilities is solid, supporting debt servicing capacity. However, given its micro size and early stage, credit exposure should be moderate.

2. Financial Strength:
   The balance sheet as of 31 July 2024 shows net assets of £7,682, an improvement from £1 in the prior year, reflecting initial capitalization and operational progress. Current assets of £10,553 comfortably cover current liabilities of £2,871, resulting in positive net current assets of £7,682, indicating healthy liquidity. The company holds no fixed assets, which is typical for a micro IT services firm. Shareholders’ funds match net assets, showing no external debt on the balance sheet.

3. Cash Flow Assessment:
   The company’s working capital is positive and sufficient to cover short-term obligations. The directors have provided loans amounting to £502 (net) to the company, interest-free and repayable on demand, which adds to liquidity flexibility. There is no indication of cash flow stress or overdue payables. The small scale and recent incorporation mean cash flow visibility is limited, but current indicators are favorable.

4. Monitoring Points:

• Watch for growth in turnover and profitability in future filings to ensure sustainable cash flows.
• Monitor director loans and any changes in capital structure.
• Review any changes in current liabilities that could pressure liquidity.
• Track timely filing of accounts and confirmation statements to ensure compliance.
• Assess impact of any operational scale-up on working capital needs.