Company Number: 14629084

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AKA Store Limited is a recently incorporated (2023) private limited company engaged in retail sale of beverages. Its financials show a positive net asset position but with modest net current assets (£2,663) relative to current liabilities (£24,534). The company is in an early stage with limited financial history and low equity base (£2,663). The directors appear to have adequate control and there are no indications of adverse conduct. Approval can be considered with conditions such as monitoring liquidity, ensuring timely payments, and requiring updated financial information regularly due to the startup nature and thin working capital.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset position of £2,663, primarily driven by stock (£22,410) and a small cash holding (£4,787). Current liabilities are relatively high (£24,534), mostly trade creditors and a small corporation tax liability (£534), resulting in a thin positive working capital. The company’s equity is low, with share capital of £100 and retained earnings of £2,563. No fixed assets or long-term liabilities are reported. Overall, the company’s financial strength is limited but stable, typical for a startup micro entity.

3. Cash Flow Assessment:
   Cash holdings are modest (£4,787) and just cover a fraction of current liabilities, indicating tight liquidity. The working capital (£2,663) is positive but slim. The stock level is significant relative to cash, suggesting working capital is largely tied in inventory. This could pose cash flow risks if stock turnover slows or payments from customers are delayed. Regular cash flow monitoring and maintaining supplier payment terms will be critical to avoid liquidity strain.

4. Monitoring Points:

• Liquidity ratios and cash flow forecasts to ensure ongoing ability to meet short-term obligations.
• Turnover and stock turnover rates to assess operational efficiency and inventory management.
• Timely filing of accounts and confirmation statements to maintain good compliance standing.
• Changes in directors or ownership control that may impact governance or credit risk.
• Profitability trends and equity growth in subsequent accounts to track business sustainability.