ACORN GARDEN DESIGN LTD

Executive Summary

Acorn Garden Design Ltd is a very small, newly established garden design company with a modest net asset base and positive but limited working capital. While current financials suggest basic liquidity and compliance, the scale and financial depth are minimal. Credit approval is recommended on a conditional basis, with close monitoring of cash flow and business development to mitigate risk.

ACORN GARDEN DESIGN LTD - Analysis Report

Company Number: 14721587

Analysis Date: 2025-07-20 16:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Acorn Garden Design Ltd is a newly incorporated micro-entity with limited financial history, showing modest net current assets of £1,341 as at 31 March 2024. The company has no overdue filings, which indicates compliance discipline, and the sole director has full control. However, the minimal scale of operations and low asset base suggest limited financial cushion, so credit approval should be conditional on continued monitoring and possibly a small, short-term facility aligned with business scale.

2. Financial Strength:
   The balance sheet reflects a very small operation with current assets of £3,580 and current liabilities of £2,239, resulting in net current assets of £1,341. Total equity matches net current assets, indicating no long-term liabilities. The company is classified as micro, with an average workforce of 2 employees, consistent with the reported scale. There are no fixed assets or retained earnings reported, which is typical for a start-up period. The financial structure is stable but very thin, with limited capital buffer.

3. Cash Flow Assessment:
   Current assets mainly likely comprise cash and receivables, sufficient to cover short-term liabilities by a narrow margin. The positive net working capital indicates basic liquidity, but the absolute values are very low. Without more detailed cash flow data, it is prudent to assume cash flow is tight and dependent on ongoing trading activity. The business will require close attention to receivables management and working capital to ensure debt service capability.

4. Monitoring Points:

• Track turnover growth and profitability trends in future accounts to assess business scalability.
• Monitor cash flow statements or management accounts for liquidity changes.
• Watch for any increases in current liabilities that might strain working capital.
• Review director’s conduct and any changes in ownership or management that might impact governance.
• Confirm timely filing of accounts and returns continue to avoid regulatory risks.