Company Number: 13589287

Analysis Date: 2025-07-20 11:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   1st Premier Damp Proofing Ltd is an active micro private limited company operating in the specialised construction sector. The company shows improving net assets year over year, indicating some progress in financial stability. However, recent financial data (2024) reveals a negative net current assets position (-£11,199), implying working capital constraints and potential liquidity challenges. The presence of significant current liabilities exceeding current assets is a concern for short-term creditor repayment capacity. Given the company’s young age (incorporated 2021) and limited financial history, credit approval should be conditional on enhanced monitoring and possibly requiring personal guarantees or collateral to mitigate risk.

2. Financial Strength:
   The company’s net assets improved from £556 in 2022 to £4,486 in 2023 but as of 2024, the balance sheet shows total assets less current liabilities at only £626, with net current liabilities of £11,199. This shift is largely due to a sharp increase in short-term creditors (£13,428 in 2024 vs. £3,535 in 2023). Fixed assets remain modest (~£11k), reflecting a small asset base. The equity base is thin and fluctuating, consistent with a micro company still establishing itself. Overall, the financial strength is weak due to working capital deficits and limited tangible asset coverage.

3. Cash Flow Assessment:
   The sharp increase in current liabilities relative to current assets suggests cash flow pressure. The negative net current assets position signals insufficient liquid resources to cover short-term obligations, raising concerns about timely payment of trade creditors and short-term loans. The company’s small size and low employee count (2-3) suggest limited operational scale, which may constrain cash inflows. No detailed profit and loss or cash flow statements were filed, limiting full cash flow visibility. Liquidity appears strained, warranting cautious credit exposure.

4. Monitoring Points:

• Monitor monthly cash flow and working capital trends closely.
• Watch trade creditor days and any late payment events.
• Review updated financials after the next filing to assess if working capital improves.
• Track any increases in borrowing or overdraft usage.
• Evaluate management’s plans for improving liquidity and profitability.
• Confirm no director disqualifications or adverse conduct records arise.