ABT IMPORTS AND EXPORTS TRADING CO LIMITED

Executive Summary

ABT IMPORTS AND EXPORTS TRADING CO LIMITED is a newly formed micro-entity with a stable balance sheet and positive working capital, indicating initial financial health. Given limited trading history, credit approval is recommended on a conditional basis with emphasis on monitoring future financial performance and compliance. The company's small scale and strong owner control provide a manageable risk profile for credit exposure at this stage.

ABT IMPORTS AND EXPORTS TRADING CO LIMITED - Analysis Report

Company Number: 15685534

Analysis Date: 2025-07-19 11:51 UTC

1. Credit Opinion: APPROVE with caution. ABT IMPORTS AND EXPORTS TRADING CO LIMITED is a newly incorporated micro-entity with a positive net asset position and working capital. The company shows initial signs of financial stability with net assets of £34,766 and positive net current assets of £8,444. However, given it has only just completed its first financial year, there is limited trading history to fully assess ongoing profitability and cash flow generation. Approval should be conditional on continued monitoring of trading performance and timely filing of future accounts.

2. Financial Strength: The balance sheet as at 30 April 2025 shows fixed assets of £26,322 and current assets of £27,405 against current liabilities of £18,961 resulting in net current assets of £8,444. Total net assets and shareholders' funds match at £34,766, reflecting no external debt and a modest equity base. The company is classified as a micro entity, with 8 employees, indicating small scale operations. The capital structure appears sound for a startup, but the asset base is relatively small. The positive working capital suggests the business currently has sufficient short-term resources to meet obligations.

3. Cash Flow Assessment: Current assets exceed current liabilities by approximately £8.4k, indicating reasonable liquidity to cover short-term debts. However, the accounts do not disclose detailed cash flow statements or profit and loss figures, limiting assessment of operating cash generation. Early-stage companies often face cash flow volatility, so close attention is needed on debtor collections, inventory management, and creditor payments. The director’s 100% ownership and control may support swift decision-making to manage liquidity risks.

4. Monitoring Points:

• Future filing of accounts for profitability, cash flow, and debt levels.
• Changes in net current assets and net assets to track financial trajectory.
• Timeliness of statutory filings and compliance.
• Expansion or contraction in employee numbers as a proxy for business growth.
• Any director or ownership changes that may affect governance or financial strategy.
• Industry conditions in manufacture of non-electric domestic appliances impacting business resilience.