Company Number: 13275087

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ABBY AK LTD is a micro private limited company operating in retail sale of food, beverages, or tobacco. The company is active and compliant with filing deadlines. The latest financials show a weakening liquidity position with a negative net current asset balance of £27,943 as at 31 March 2024, down from a positive £13,505 the prior year. Long-term creditors have also increased, indicating potential refinancing or increased borrowings. While net assets remain positive and stable around £34,000, the deterioration in working capital signals pressure on short-term payment capability. The company's small scale and limited financial buffer suggest a need for careful monitoring. Credit approval may be granted with conditions such as limits on additional borrowings and periodic review of cash flow.

2. Financial Strength:
   The company’s fixed assets increased moderately to £88,000, reflecting some investment or capital expenditure. Shareholders’ funds are stable at £34,617, indicating some retained earnings or equity injection since incorporation. However, the balance sheet shows a significant increase in current liabilities to £72,794 from £59,769 and a rise in creditors due after one year from £25,000 to nearly £60,000 in 2023 (though note this figure appears to have decreased back to £25,000 in 2024). The overall net assets are modest but positive, showing solvency, yet the rising liabilities and negative working capital in the latest year reduce financial robustness.

3. Cash Flow Assessment:
   The negative net current assets imply the company’s current liabilities exceed current assets, which could indicate liquidity stress and potential difficulty in meeting short-term obligations without additional financing or cash inflows. The reduction in current assets and increase in creditors within one year should be investigated for causes such as delayed receivables collection or increased payables. The company’s small size and limited capital base mean working capital management is critical. There is no direct cash flow data here but the balance sheet suggests constrained liquidity.

4. Monitoring Points:

• Working capital trends: watch for improvement or further deterioration in net current assets.
• Creditor days and debtor collection efficiency.
• Any new borrowing or refinancing terms that affect long-term debt levels.
• Profitability and cash flow generation in upcoming accounts to assess ability to service liabilities.
• Business activity stability in the retail sector given economic conditions.