Company Number: 12831517

Analysis Date: 2025-07-19 12:07 UTC

1. Credit Opinion: APPROVE
   Abella Cafe Ltd demonstrates a stable financial position with positive net assets and net current assets increasing steadily over the past four years. The company has maintained positive working capital and cash balances above current liabilities, indicating an ability to meet short-term obligations. There is no evidence of financial distress or adverse director conduct. With modest but consistent growth and no overdue filings, the company appears creditworthy for typical lending facilities, subject to standard covenants.

2. Financial Strength:
   The balance sheet shows net assets of £22,814 as at 31 July 2024, up from £8,447 in 2020, reflecting incremental retained earnings accumulation in the profit and loss reserve. The company operates as a small private limited entity with minimal share capital (£100). Current liabilities (£6,682) are well covered by cash (£29,496) and net current assets (£22,814), showing a solid liquidity buffer. No long-term debt or fixed assets are reported, consistent with the nature of a licensed restaurant operating with minimal capital investment. The increase in shareholder funds indicates sound financial stewardship and growth in equity.

3. Cash Flow Assessment:
   The cash position has improved year-on-year, growing from £10,482 in 2020 to £29,496 in 2024. This positive trend alongside current liabilities increasing modestly suggests effective working capital management. Net current assets growth from £8,447 to £22,814 underscores sufficient liquidity to cover short-term obligations comfortably. There are no indications of reliance on external borrowing or overdrafts, and tax and social security liabilities remain manageable. Overall, cash flow appears adequate to support ongoing operations and debt servicing if credit is extended.

4. Monitoring Points:

• Continue monitoring cash balances relative to current liabilities to ensure liquidity remains strong.
• Track profitability and retained earnings growth through full profit and loss disclosures once available, as the current filleted accounts lack detailed income statement data.
• Observe any changes in staff levels or operational scale that could impact cost structure and cash flow.
• Watch for timely filing of annual accounts and confirmation statements to avoid compliance risks.
• Review any changes in director appointments or ownership structure for governance stability.